The patent-pending process of Century Lithium for extracting lithium from claystone at Angel Island involves chloride leaching with DLE. Credit: chemical industry/Shutterstock.

Century Lithium has signed a non-binding memorandum of understanding (MOU) with Orica Specialty Mining Chemicals for sodium hydroxide supply from Angel Island.

The agreement, signed on 16 January 2025, outlines the intention to establish a multi-year offtake agreement, whereby Orica will purchase sodium hydroxide from Century Lithium’s Angel Island project in Nevada, US.

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Century Lithium president and CEO Bill Willoughby said: “The non-binding MOU with Orica marks a key milestone for Angel Island. The MOU outlines the first expected agreement of its kind for the project and involves a large portion of the surplus sodium hydroxide anticipated during the early years of operation.

“We are excited to work with Orica and have their support at this stage of development at Angel Island.”

Century Lithium’s patent-pending process for extracting lithium from claystone at Angel Island involves chloride leaching with direct lithium extraction (DLE).

This process uses salt to create reagents for leaching and pH control, resulting in surplus sodium hydroxide production.

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The sale of this sodium hydroxide is expected to help maintain low operating costs for the project’s primary product, lithium carbonate.

The MOU includes Century Lithium’s provision of membrane-grade sodium hydroxide to Orica, an initial five-year term with a right of first offer for an additional five years, and pricing to be determined by a definitive agreement.

Orica Specialty Mining Chemicals president Andrew Stewart said: “This collaboration signifies our commitment to strengthening and unlocking Nevada’s manufacturing and mining sectors. By securing a reliable source of sodium hydroxide from Angel Island, we strengthen the local supply chain and reinforce our dedication to innovative US manufacturing solutions for our customers in North America.”

This partnership aims to strengthen the US supply chain, reducing reliance on sodium hydroxide imports to the western US and supporting Nevada’s mining industry.