E3 Lithium (TSX-V:ETMC) has entered into a non-binding collaboration agreement with Tees Valley Lithium aimed at supporting its European market strategy.
The framework agreement with Tees Valley Lithium, a wholly owned subsidiary of Alkemy Capital Investments, gives E3 the option to convert its lithium carbonate into lithium hydroxide and support future European offtake opportunities.
Under the proposed arrangement, E3 would use Tees Valley Lithium’s refinery in the UK to convert lithium carbonate from the Clearwater Project into battery-grade lithium hydroxide for potential European customers. The agreement contemplates up to 50,000 tonnes of lithium hydroxide over an initial 10-year term.
CEO Chris Doornbos says the collaboration provides “meaningful optionality” as the company negotiates with potential offtake partners.
“This framework provides a potential pathway to serve hydroxide demand while we continue to focus on our speed to market and enhanced capital efficiencies for our carbonate production,” Doornbos says.
The agreement is non-binding and there is no guarantee the companies will enter into a definitive agreement or that E3 will use Tees Valley Lithium’s conversion capacity. Any future arrangement remains subject to securing a third-party offtake agreement and executing definitive documentation.
E3 Lithium is developing the Clearwater Project in Alberta, Canada. According to the company, the project hosts measured and indicated mineral resources of 21.2 million tonnes of lithium carbonate equivalent, plus an inferred resource of 300,000 tonnes. The Prefeasibility Study also estimates a pretax net present value of US$5.2 billion ($7.49 billion) and an internal rate of return of 29.2%.
Write to France Pinzon at Mining.com.au
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