Vulcan Energy's (ASX:VUL)
binding lithium hydroxide offtake term sheet has signed with LG Energy Solution (LGES) for their global Zero Carbon LithiumTM project.
Vulcan Energy aims to become the world’s first lithium producer with net zero greenhouse gas emissions. Its Zero Carbon LithiumTm project intends to produce a battery-quality, lithium hydroxide chemical product from its combined geothermal energy and lithium resource, which is Europe’s largest lithium resource.
LG Energy is the largest producer of lithium-ion batteries for electric vehicles in the world and supplies its products to top global original equipment manufacturers (OEM'S).
The agreement is for an initial five-year term which can be extended for a further five years, with start of commercial delivery set for 2025.
LG Energy is to purchase 5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000 metric tonnes per year during the second and subsequent years of the supply term.
Pricing will be based on market prices of lithium hydroxide. Managing director, Dr Francis Wedin said, “this is the first binding lithium offtake term sheet for the Zero Carbon LithiumTM Project, so it is fitting that it is with the largest EV battery producer in the world."
Shares in Vulcan Energy (ASX:VUL)
are trading 1.71 per cent higher at $9.49.