Traxys enters 10-year lithium offtake agreement with Lilac Solutions

Traxys' 10-year offtake agreement with Lilac Solutions for 100% of the phase-one output from its Great Salt Lake lithium carbonate plant represents a significant commitment to securing lithium supply in the United States. The agreement, valued at approximately US$1 billion at current lithium carbonate prices, underscores the growing demand for lithium driven by the expansion of the battery storage and electric vehicle markets. This deal provides Lilac Solutions with a guaranteed revenue stream for its initial production, facilitating the development and scaling of its lithium extraction technology. This agreement is notable for its long-term duration and the involvement of Traxys, a major physical commodity trader, which lends credibility and stability to the project. The offtake agreement also highlights the strategic importance of domestic lithium production in the US, particularly from unconventional sources like the Great Salt Lake. The deal's success hinges on Lilac Solutions' ability to achieve its planned production capacity of 5000 tonnes-per-annum of lithium carbonate.