Had to post this. Have a good summer! LG CHEM AND NEMASKA LITHIUM ANNOUNCE SIGNATURE OF AN INITIAL 5-YEAR SUPPLY AGREEMENT FOR LITHIUM HYDROXIDE
Qubec, Qubec, Canada, July 3, 2018. Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX: NMX) (OTC: NMKEF) and LG Chem, Ltd. (“LG”) are pleased to announce the signature of an agreement providing for the supply of battery grade lithium hydroxide by the Corporation to LG.
“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”, said Guy Bourassa, President & Chief Executive Officer of Nemaska Lithium.
Under this agreement, Nemaska Lithium agrees to supply LG, on a take-or-pay basis and through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., with 7,000 tonnes per year of lithium hydroxide produced at the Corporation’s commercial plant in Shawinigan, for an initial 5-year period scheduled to start in October 2020. Nemaska Lithium is entitled, if ever necessary, to reschedule the commencement of the supply period, within certain parameters set out in the agreement and based on the anticipated commissioning, ramping up and production start date for the Shawinigan plant.
With this additional off-take agreement and taking into account the right of first offer granted to SoftBank Group to purchase up to 20% of production, Nemaska Lithium has now committed or has agreement in principle in place for over 90% of its anticipated 33,000 tonnes/y LCE capacity.