Argosy signs lithium carbonate supply agreement with Mitsubishi

1 April 2019 (Last Updated April 1st, 2019 12:37)

Argosy Minerals has signed an agreement to supply up to an initial 100t of lithium carbonate for 12 months from its Rincon Lithium Project in Argentina to Mitsubishi Corporation RtM Japan.

Argosy signs lithium carbonate supply agreement with Mitsubishi
Argosy will supply up to an initial 100t of lithium carbonate to Mitsubishi. Credit: Dnn87.

Argosy Minerals has signed an agreement to supply up to an initial 100t of lithium carbonate for 12 months from its Rincon Lithium Project in Argentina to Mitsubishi Corporation RtM Japan.

Under the strategic sales arrangement, Argosy will be able to use the Stage I industrial-scale pilot plant for small-scale commercial lithium carbonate production and product sales after completing comprehensive processing and sample test-works.

Work will be conducted using Argosy’s pilot plant and industrial scale proprietary chemical process solution.

The pilot plant was first commissioned in April last year and first battery grade 99.5% lithium carbonate was confirmed in June.

Operations to supply the product under the sales agreement are expected to start in the middle of this year.

“Argosy said it will continue prioritising efforts to secure a strategic partnership for the capex funding solution for the commercial development of the Rincon Lithium Project.”

Argosy Minerals managing director Jerko Zuvela said: “We are delighted to secure this preliminary product off-take arrangement with Mitsubishi RtM, signifying both companies’ beneficial interests to formalise our well-established relationship.

“Argosy places considerable importance in working together with Mitsubishi RtM and the potential longer term benefits this relationship may deliver. It is also a strong endorsement of Argosy, the Rincon Lithium Project and our fast-track development strategy toward commercial LCE production.”

The company will determine the sales price for each cargo using a set formula agreed between both parties.

The sales agreement provides flexibility to amend the arrangement for the mutual benefit of Argosy and Mitsubishi.

Argosy said it will continue prioritising efforts to secure a strategic partnership for the capex funding solution for the commercial development of the Rincon Lithium Project.