GREY:NMKEF - Post by User
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Tcheckon Dec 08, 2019 7:55pm
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Reminder offtake agreements in place
Reminder offtake agreements in place Offtake Agreements
Nemaska Lithium has secured world-class off-take partners including Johnson Matthey, Northvolt, LG Chem and Softbank. These companies have given the project key endorsements through off-take contracts, product qualification and financial support.
- Johnson Matthey, a global specialty chemicals company, has made an up-front payment of C$12 million to Nemaska Lithium for services and product produced from the Phase 1 plant. In an expanded agreement, Nemaska Lithium has agreedto supply a total of 61,000 tonnes of lithium hydroxide to Johnson Matthey over a 10-year period starting in 2021.
- Northvolt, a battery manufacturing company, has agreed on a take-or-pay basis where Nemaska Lithium is expected to supply up to 5,000 tonnes per year of lithium hydroxide over a five-year period upon commercial production at the Shawinigan Plant.
- LG Chem, Korea’s largest diversified chemical company and world-leading lithium-ion manufacturer, has agreed on a take-or-pay basis where Nemaska Lithium is expected to supply 7,000 tonnes per year of lithium hydroxide to LG Chem over a five-year period starting in October 2020.
- In addition to the C$94 million private placement in Nemaska Lithium, Softbank, a global technology player, has signed an agreement to be allowed to purchase up to 20 percent of the lithium hydroxide and lithium carbonate produced at the Shawinigan plant before Nemaska can go to anyone else.
The contracts for supply account for approximately 70 percent of Nesmaka’s anticipated annual production.