Trafigura agrees 10-year offtake for 100,000 t of battery-grade lithium from EnergyX
- Agreement is a binding 10-year offtake for 100,000 metric tons of battery-grade lithium products.
- Purchases comprise lithium carbonate from Project Black Giant (Antofagasta, Chile) and lithium hydroxide from Project Lonestar (Texas, US).
- Trafigura will take 66% of Phase 1 offtake at Black Giant and 30% of Phase 1 offtake at Lonestar.
- EnergyX targets commercial-scale production at Black Giant in 2028 and Lonestar in 2029; the offtake supports financing including from the U.S. EXIM Bank.
Deal overview
Trafigura has signed a binding 10-year offtake agreement with Energy Exploration Technologies, Inc. to purchase 100,000 metric tons of battery-grade lithium products from EnergyX projects in Chile and the United States. The contract specifies lithium carbonate from Project Black Giant in Antofagasta and lithium hydroxide from Project Lonestar in Texas.
Volumes and timing
Under the agreement, Trafigura will take 66% of Phase 1 offtake from Black Giant and 30% of Phase 1 offtake from Lonestar. EnergyX is targeting commercial-scale production at Black Giant in 2028 and at Lonestar in 2029. A significant share of the volumes are expected to supply the US battery supply chain.
Technology and finance impact
EnergyX will produce lithium using its proprietary direct lithium extraction (DLE) technology. The offtake is intended to support the bankability of both projects and is cited as a key requirement for financing from the U.S. EXIM Bank and additional project finance lenders by providing the revenue visibility lenders and investors need before committing capital.
Source: Trafigura