EnergyX will supply Trafigura with $2 billion worth of lithium over 10 years

EnergyX has signed a ten-year agreement with Trafigura, under which it will supply the Swiss company with 100,000 tons of lithium. At current prices, the deal is valued at approximately $2 billion.

Half of the lithium supplied will be hydroxide, and half will be carbonate. Both materials are used in battery manufacturing. EnergyX will source the lithium from its planned projects in Chile and Texas.

Production in Chile is expected to begin in 2028, with about two-thirds of the lithium mined there going to Trafigura. The Texas project is set to launch in 2029, with Trafigura also purchasing about a third of its output.

Initially, Trafigura plans to sell the lithium mainly in China. Later, the company also wants to supply US battery manufacturers.

EnergyX's investors include General Motors and Italy's Eni. The company needs additional financing to build new facilities and is also seeking a $690 million loan from the US Export-Import Bank. It will return to the question of going public after production begins.

Source: investing.com