Nemaska Lithium has reached a five-year agreement to supply-battery grade lithium hydroxide to Korean chemical company LG Chem.

According to the terms of the deal, LG will receive 7,000t per year of lithium hydroxide produced at Nemaska Lithium’s commercial plant in Shawinigan in Quebec, Canada.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nemaska Lithium president and CEO Guy Bourassa said: “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.”

“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.”

The delivery of the supplies will begin in October 2020 and continue for five years.

Provisions in the agreement grant Nemaska Lithium the right to reschedule the commencement of the supply period. The decision to reschedule will be based on the anticipated commissioning of the Shawinigan plant.

The latest offtake agreement comes after the company awarded the right of first offer to SoftBank Group to purchase up to 20% of production.

Nemaska Lithium has now either committed or agreed in principle for the offtake of more than 90% of its estimated 33,000 tonnes/y lithium carbonate equivalent (LCE) capacity.

In April this year, the firm signed a $150m streaming agreement with Orion Mine Finance II for the sale of 14.5% on all lithium hydroxide and lithium carbonate produced at the Shawinigan plant.

Project finances for construction, commissioning of the company’s Whabouchi lithium mine and Shawinigan electrochemical plant stand at up to $825m.

The company expects to develop a combined open pit and underground lithium mine at Whabouchi, with an estimated mine life of 33 years.