Infinity Lithium, LG Energy Solution sign MOU for lithium hydroxide offtake

Australia-listed Infinity Lithium Corp has entered into a non-binding memorandum of understanding (MOU) for the long-term supply of battery-grade lithium hydroxide with South Korean lithium-ion battery manufacturer LG Energy Solution, the Australian company said on Monday June 28.

Under the agreement, the former will supply lithium hydroxide produced from its 75%-owned San José lithium project in Spain to the latter for an initial five-year period with the potential to continue for a further five years, it said.

Battery-grade lithium hydroxide is typically used to produce nickel-rich nickel-cobalt-manganese lithium-ion batteries for electric vehicles.

The South Korean battery manufacturer has the first right of refusal to 10,000 tonne per year of lithium hydroxide, with additional volumes subject to negotiations and agreement between both parties, it added.

The purchase price will be based on the market prices for lithium hydroxide, subject to agreement by the parties and to be finalized under the terms of a binding offtake agreement, which will be concluded within 12 months of the signing of the MOU.

The San José lithium project owns the second-largest JORC-compliant hard rock lithium deposit in the European Union.

The JORC Code – or the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves – is a professional code of practice that sets minimum standards for public reporting of minerals exploration results, mineral resources and ore reserves.

Fastmarkets’ assessment for lithium hydroxide monohydrate 56.5% LiOH.H2O min, battery grade, spot price ddp Europe and US was $15.00-16.50 per kg on June 24, up by $0.50 per kg from $14.50-16.00 per kg a week earlier.

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