LG CHEM AND NEMASKA LITHIUM ANNOUNCE SIGNATURE OF AN INITIAL 5-YEAR SUPPLY AGREEMENT FOR LITHIUM HYDROXIDE
Nemaska Lithium Inc. (NMX.T) and LG Chem Ltd. have signed an agreement providing for the supply of battery-grade lithium hydroxide by the corporation to LG.
"We are pleased with this first step towards establishing a long-term commercial relationship between LG and Nemaska Lithium. The signing of this agreement is a clear vote of confidence by LG in our business plan and our capacity to be a long-term supplier of lithium hydroxide," said Guy Bourassa, president and chief executive officer of Nemaska Lithium.
Under this agreement, Nemaska Lithium agrees to supply LG, on a take-or-pay basis and through its wholly owned subsidiary, Nemaska Lithium Shawinigan Transformation Inc., with 7,000 tonnes per year of lithium hydroxide produced at the corporation's commercial plant in Shawinigan, for an initial five-year period scheduled to start in October, 2020. Nemaska Lithium is entitled, if ever necessary, to reschedule the commencement of the supply period, within certain parameters set out in the agreement and based on the anticipated commissioning, ramping up and production start date for the Shawinigan plant.
With this additional off-take agreement and taking into account the right of first offer granted to SoftBank Group to purchase up to 20 per cent of production, Nemaska Lithium has now committed or has an agreement in principle in place for over 90 per cent of its anticipated 33,000-tonne-per-year LCE capacity.
About Nemaska Lithium Inc.
Nemaska Lithium is a developing chemical company, the activities of which will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide and lithium carbonate. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, Nemaska Lithium intends to facilitate access to green energy, for the benefit of humanity.
The corporation will be operating the Whabouchi mine in Quebec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade.