CONNECT WITH US
EV & Mobility

EV & Mobility

Trafigura secures access to lithium from EnergyX

Electrive logo

Published on

Add as a preferred source on Google
Trafigura secures access to lithium from EnergyX

Commodity trader Trafigura has signed a binding 10-year offtake agreement with EnergyX for 100,000 tonnes of battery-grade lithium products from its projects in the USA and Chile. A significant portion of the lithium is to be supplied to US battery plants.

Through an agreement with EnergyX, Trafigura has once again secured access to battery-grade lithium. This follows a binding offtake agreement signed in March with Smackover Lithium for the supply of battery-grade lithium carbonate from the South West Arkansas Project, involving a volume of 80,000 tonnes over ten years.

The deal with EnergyX is a big deal too. Trafigura has secured 100,000 tonnes of lithium products over ten years, sourced from two projects. This means Trafigura will obtain lithium carbonate from EnergyX’s Black Giant project in Antofagasta, Chile, as well as lithium hydroxide from the Lonestar project in Texas, USA. Lithium carbonate is typically used as a precursor for LFP cathodes, while lithium hydroxide is more commonly used for NMC and NCA cathodes.

Trafigura has committed to purchasing 66 per cent of the offtake volume from the first phase of Black Giant and 30 per cent of the offtake volume from the first phase of Lonestar. A significant portion of these volumes will be used to supply the US battery industry, according to the company.

According to EnergyX, the agreement is valued at more than two billion US dollars based on current lithium market prices. What remains unclear is whether Trafigura will pay spot market prices or if the two companies have agreed on a fixed price tier.


Source link
Related Topics:EV & Mobility

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.