EnergyX Signs Approximately US$2 Billion Lithium Product Offtake Agreement

en.Wedoany.com Reported - On October 12, U.S.-based EnergyX and commodities trading company Trafigura announced the signing of a binding 10-year battery-grade lithium product offtake agreement, covering a total purchase volume of 100,000 tonnes. Based on the current market price of approximately US$20,000 per tonne, the potential sales revenue over the contract period is estimated at approximately US$2 billion. The agreement covers the Black Giant project in Chile and the Lonestar project in the United States, supplying battery-grade lithium carbonate and lithium hydroxide, respectively.

Under the agreement, Trafigura will purchase 66% of the planned sales output from Phase 1 of the Black Giant project and 30% of the planned sales output from Phase 1 of the Lonestar project. The two parties have adopted a take-or-pay offtake arrangement, with products primarily targeting the battery manufacturing, automotive, and energy storage industrial chains, a considerable portion of which is planned for supply to the U.S. market. EnergyX is also negotiating with other potential buyers, aiming to secure 80% of the planned sales output of the relevant projects before commercial production begins.

The Black Giant project is located in Antofagasta, Chile, and is planned to adopt EnergyX's independently developed GET-Lit direct lithium extraction and refining technology, with the goal of achieving commercial-scale production by 2028. The Lonestar project is located in Texas, United States, and uses the same technology platform to produce battery-grade lithium products, with plans to enter the commercial production phase in 2029. EnergyX commissioned the Lonestar lithium extraction facility in Texas in April 2026 and continues to advance the development of subsequent commercial-scale projects.

The financing arrangements involve construction funds for both projects. EnergyX previously secured a US$225 million strategic investment from Eni for the Black Giant project and obtained a letter of intent from the U.S. Export-Import Bank (U.S. EXIM Bank) regarding potential debt financing of US$690 million. EnergyX stated that long-term offtake contracts are an important condition for project financing institutions to assess future sales revenue and loan repayment capacity, and the relevant loans are still subject to subsequent approval and formal financing arrangements.

Trafigura will utilize its metals and minerals trading and logistics network to arrange lithium product sales. EnergyX will continue to advance preparations for the commercial construction of both projects and conduct negotiations with potential financing institutions and other lithium product buyers.