en.Wedoany.com Reported - T5 Smackover Partners (T5) has signed a binding offtake agreement with Glencore Ltd. for lithium carbonate to be supplied from T5's planned geothermal power and critical minerals project in the Smackover Formation in East Texas. Under the agreement, Glencore will market 100% of T5's Phase 1 lithium production, estimated at approximately 5,000 metric tons per year, for a term of five years, totaling approximately 25,000 tons, with delivery commencing from the start of first commercial production.
T5 is a subsidiary of T5 Holdings LP in Texas. Bruce Thompson, CEO and founder of T5, stated that the partnership with Glencore enables T5 to enter the East Texas market more quickly, and Glencore's strength in global lithium operations allows T5 to focus on production, enabling East Texas landowners to receive royalty checks faster.
Earlier this year, T5 announced the advancement of its combined geothermal power and critical minerals project covering Franklin, Titus, and Hopkins counties in Texas. Initially approved as a geothermal well, the first phase of development exceeded temperature expectations. While discovering geothermal resources, T5 identified multiple zones within the Smackover Formation containing some of the highest lithium concentrations reported globally (approximately 800 ppm, compared to a global average of 100 ppm).
Under the current development plan, T5 expects its initial Franklin, Titus, and Hopkins county projects to produce approximately 35,000 to 50,000 metric tons of lithium carbonate equivalent (LCE) annually. Robin Francois, head of Glencore's lithium business, stated that this offtake agreement further deepens Glencore's critical minerals partnerships in North America, and T5's East Texas project is expected to provide reliable, domestically produced battery-grade lithium carbonate to support customers in North America and globally.
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