en.Wedoany.com Reported - LibertyStream Infrastructure Partners (TSX-V:LIB) has signed a term sheet for a long-term lithium carbonate offtake agreement, establishing a fully localized supply chain for U.S. customers.

The offtake agreement will establish a multi-year supply relationship for U.S.-produced lithium carbonate from Facility 1. Facility 1 is LibertyStream's first planned commercial facility, located at Select Water Solutions' (NYSE:WTTR) site in Texas.

Under the initial delivery plan, LibertyStream will supply 600 tons of lithium carbonate annually starting in 2027, delivered in quarterly batches of 150 tons. The company stated that this milestone marks a critical transition from technology validation to commercial execution. This follows years of field operations, extraction and refining validation, lithium carbonate production, customer sampling, third-party certification, and initial purchase order activities, ultimately enabling Facility 1 to deliver to customers as planned.

Based on current field operations and LibertyStream's planned commercial configuration, the company estimates that a facility with an annual capacity of 1,000 tons can achieve an all-in operating cost of $6,200 per ton of lithium carbonate (equivalent to C$8,766.2). Management expects that under these assumptions, each 1,000-ton-per-year facility can generate positive operating cash flow on a standalone basis, subject to actual lithium carbonate prices, operational performance, ramp-up time, and financing costs.

LibertyStream has delivered lithium carbonate samples to multiple customer groups, representing a pipeline of expected demand exceeding 10,000 tons annually in the U.S. through 2029. Facility 1 is under development as the core facility under LibertyStream's previously announced agreement with Select Water. Located in Howard County, the facility is expected to integrate the company's direct lithium extraction and refining platform with existing oilfield water infrastructure to support domestic lithium carbonate production from U.S. oilfield brines.

To support the smooth ramp-up of Facility 1 and ensure that products delivered to offtake partners meet all technical and quality control requirements, LibertyStream expects to enter into a consulting agreement with the offtake partner or its affiliates. LibertyStream is a lithium developer and technology provider committed to becoming one of the first companies in North America to commercially produce lithium carbonate from oilfield brines.

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