Canada Lithium (TSX: T.CLQ, Stock Forum) Monday said it has signed a five-year lithium carbonate offtake agreement with Tewoo-ERDC, one of China's larger commodities traders, for a minimum annual commitment of 12,000 tonnes of battery-grade lithium carbonate, this according to a company news release.
The five-year agreement also includes a provision for the formation of a marketing joint venture.
Canada Lithium's mine and processing plant near Val d'Or, Québec, currently approaching the end of construction and scheduled to enter the commissioning phase late this year, will have an annual capacity to produce approximately 20,000 tonnes of lithium carbonate.
"The agreement with Tewoo secures a market for a significant portion of our annual production and demonstrates that China is the fastest growing consumer of lithium carbonate products. Having a long- term, strategic partnership with the Tewoo group will provide significant support for our product sales and distribution in China," said Canada Lithium CEO and President Peter Secker. "Negotiations with other parties for additional lithium carbonate tonnages are ongoing."