Prairie Lithium (ASX:PL9) has entered into a binding definitive agreement, where Hydro Lithium (KOSDAQ:101670) will purchase 100% of the phase one production from its namesake project in Canada.
Hydro Lithium will provide and operate $10 million of advanced proprietary lithium refining equipment for phase one – totalling 150 tonnes per year of lithium carbonate equivalent — at the Prairie Lithium Project.
The agreement is for an initial 10-year term and may be renewed by mutual agreement for up to 30 years.
Both companies will work together and use best efforts to substantially expand supply under the agreement, as Prairie Lithium scales production.
Prairie Lithium says the agreement is an “important” step in de-risking the project, as it secures a binding offtake partner for phase one production, while also bringing strategic equipment and technical capability to the project.
Production and disposal wells have been drilled, and power infrastructure has been installed.
Managing Director Paul Lloyd says Hydro Lithium is an “incredible” project partner for the company, with existing operations and battery-grade lithium production.
“This provides us a very clear path in which we will establish and grow revenues, and be one of the first lithium brine producers in North America bringing new lithium to market,” Lloyd says.
Hydro Lithium CEO Uong Chon says Prairie Lithium is one of the most advanced lithium brine projects in North America.
“Saksatchewan has very high-quality lithium brine resources, and we look forward to sourcing our lithium from Saskatchewan,” Chon says.
“Our strategic collaboration will represent a significant investment by Hydro Lithium in the Prairie Lithium Project in Saskatchewan.”
Hydro Lithium operates an existing battery-grade refinery in South Korea with nameplate capacity of 3,600 tonnes per year of lithium carbonate equivalent.
This provides Prairie Lithium with an established downstream processing route for phase one production and aligns with the company’s strategy of selling an upgraded intermediate lithium product rather than conducting the full battery-grade conversion.
Write to Aaliyah Rogan at Mining.com.au
Images: Prairie Lithium
