LibertyStream Infrastructure Partners (TSX-V:LIB) has executed a term sheet for a long-term lithium carbonate offtake agreement that will establish a fully domestic supply chain for US customers.
The offtake deal will create a multi-year supply relationship for US-produced lithium carbonate from Facility 1, LibertyStream’s first planned commercial facility located at Select Water Solutions’ (NYSE:WTTR) site in Texas.
Under the initial delivery schedule, LibertyStream will supply 600 tonnes per year beginning in 2027, delivered in quarterly shipments of 150 tonnes.
LibertyStream says the milestone represents a key step in its transition from technology validation to commercial execution. It follows years of field operations, extraction and refining validation, lithium carbonate production, customer sampling, third-party qualification, and initial purchase-order activity, culminating in scheduled customer deliveries from Facility 1.
Operations update
Based on current field operations and LibertyStream’s planned commercial configuration, the company estimates that a 1,000-tonne-per-year facility can achieve all-in operating costs of US$6,200 ($8,766.2) per tonne of lithium carbonate.
Under these assumptions, management expects each 1,000-tonne-per-year facility to generate positive operating cash flow on a standalone basis, subject to realised lithium carbonate pricing, operating performance, ramp-up timing, financing costs, and other factors.
LibertyStream has delivered lithium carbonate samples to multiple groups representing an anticipated demand pipeline exceeding 10,000 tonnes per year through 2029 in the US.
Facility 1 is being developed as the anchor installation under LibertyStream’s previously announced agreement with Select Water. The Howard County facility is expected to integrate the company’s direct lithium extraction and refining platform with existing oilfield water infrastructure to support domestic lithium carbonate production from US oilfield brine.
To support a smooth scale-up of Facility 1 and ensure product delivered to the offtake partner meets all technical and quality-control requirements for lithium carbonate, LibertyStream expects to enter into a consulting agreement with the offtake partner, or an affiliate thereof, to provide advisory services.
LibertyStream is a lithium developer and technology provider focused on becoming one of North America’s first commercial producers of lithium carbonate from oilfield brine.
Write to Aaliyah Rogan at Mining.com.au
Images: LibertyStream Infrastructure Partners
