Orocobre’s sale agent signs multi-year battery-grade lithium carbonate supply deals

Toyota Tsusho Corp, the joint sales and marketing agent for lithium chemicals from Orocobre’s Olaroz lithium works, has signed contracts to supply battery-grade lithium carbonate to two leading Chinese cathode manufacturers, Orocobre said.

The first contract covers sales of 7,200 tonnes of battery-grade lithium carbonate while 2,880 tonnes of micronised battery-grade lithium carbonate are committed to the second contract, the company said on Tuesday April 20.

Under the two contracts, the tonnages will be delivered over three years, with the first shipments expected in the current quarter, it added.

The Australia-listed company did not disclose the identities of the buyers.

The sales price for each contract is set per an agreed formula and is linked to market pricing with a floor and a cap, according to the company.

“This is a welcome first step towards our previously stated commercial strategy of selling a greater proportion of our product under long-term sales agreements with key customers,” Martín Pérez de Solay, Orocobre managing director and chief executive officer, said.

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