ASX-listed lithium miner Vulcan Energy Resources has signed a binding lithium hydroxide offtake agreement with LG Energy Solution (LGES) – the largest producer of lithium-ion batteries for electric vehicles (EVs) in the world.
According to Vulcan Energy’s statement, the agreement is for an initial five-year term which can be extended by a further five years, with start of commercial delivery scheduled for 2025.
Under the agreement, LGES will 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.
Commenting on the offtake agreement, Vulcan Energy’s Managing Director, Dr Francis Wedin, said the company was looking forward to “a long and productive relationship with LGES”.
“This is the first binding lithium offtake term sheet for the Zero Carbon Lithium Project, so it is fitting that it is with the largest EV battery producer in the world,” Mr Wedin continued.
“LGES’s operations are of course global, but it is already producing batteries in Europe.
“The agreement is in line with our strategy to work with tier one battery and automotive companies in the European market.”