Australian firm Eastern Iron and Ya Hua International Investment and Development, a subsidiary of Sichuan Yahua Industrial Group, have agreed to form a strategic partnership to acquire and develop lithium projects.
A non-binding memorandum of understanding (MOU) has been signed between the firms in this regard.
Within three months, the parties will work on signing a strategic partnership agreement for the supply of spodumene concentrates.
The partnership will also focus on the potential acquisition and development of lithium projects, including the Trigg Hill Lithium Tantalum Project in Australia.
Moreover, the two firms will enter a joint venture (JV) for the acquisition and development of lithium projects in countries excluding China.
Subject to Eastern Iron’s acquisition of the Trigg Hill Lithium Tantalum Project and defining an initial exploration target, Eastern Iron and Ya Hua will establish a JV.
This JV will be responsible for the exploration and development of the Trigg Hill project, which is located in the Shaw River district, Pilbara.
Eastern Iron said: “Yahua will be granted the first right of refusal for product offtake from any of the JV projects, including the Trigg Hill Project.”
Yahua Group is a China-based producer of lithium hydroxide and lithium carbonate. Its customer base includes Tesla, BYD Auto, Zhenhua E-Chem and Sinopec.
Last month, Eastern Iron signed a binding heads of agreement for an option to acquire a 100% interest in the Trigg Hill Project, which contains a number of lithium-caesium-tantalum pegmatites, from Amery Holdings.