Energy Exploration Technologies Inc. (EnergyX) of Austin, Texas, said it has signed a 10-year agreement to sell 100,000 metric tons of battery-grade lithium to global commodity trader Trafigura Trading LLC of Houston.
In a news release, EnergyX valued the take-or-pay deal at more than $2 billion, based on current prices of about $20,000 per metric ton.
EnergyX said the deal is its first “publicly announced offtake agreement” and “a defining commercial milestone for the company.”
EnergyX said the agreement covers lithium from its first two flagship projects: lithium carbonate supplied from Black Giant in Chile and lithium hydroxide from Project Lonestar in Texas. It said that “a significant share” will be directed to the U.S. battery supply chain.
By the Numbers
66%: Trafigura’s share of Phase 1 lithium carbonate from Project Black Giant in Chile.
30%: Its share of Phase 1 lithium hydroxide from Project Lonestar in Texas.
80%: EnergyX’s offtake target. Talks with other buyers are underway.
2028: Targeted start of commercial-scale production.
“A long-term purchase commitment from a counterparty of Trafigura’s scale and credit quality shows that the market wants EnergyX’s product,” founder and CEO Teague Egan said. “It also gives lenders and investors the revenue visibility they need before committing capital to commercial construction.”
The deal comes on the heels of Trafigura’s offtake agreement with Smackover Lithium, which is planning a $1.5 billion DLE plant in Lafayette County, Arkansas.
