Vulcan Energy of Australia has signed a binding lithium hydroxide offtake term sheet with LG Energy Solution of South Korea. The agreement is for an initial five-year term with start of commercial delivery set for 2025. Under the agreement, LG will purchase 5,000 tonnes of battery grade lithium hydroxide in the first year, ramping up to 10,000 tonnes/year in subsequent years.
Conditions to be met before the start of commercial delivery include the execution of a definitive formal off-take agreement on materially the same terms by the end of November 2021, the successful start of commercial operation, and full product qualification.
Vulcan is aiming to become the world’s first lithium producer with net zero greenhouse gas emissions. Its ZERO CARBON LITHIUM™ Project intends to produce a battery-quality lithium hydroxide chemical product from its combined geothermal energy and lithium resource in Germany.
Volume 35, Issue 14