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July 5, 2018

Nemaska Lithium signs lithium hydroxide offtake deal with LG Chem

Nemaska Lithium has reached a five-year agreement to supply battery-grade lithium hydroxide to Korean chemical company LG Chem.

Nemaska Lithium has reached a five-year agreement to supply-battery grade lithium hydroxide to Korean chemical company LG Chem.

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According to the terms of the deal, LG will receive 7,000t per year of lithium hydroxide produced at Nemaska Lithium’s commercial plant in Shawinigan in Quebec, Canada.

Nemaska Lithium president and CEO Guy Bourassa said: “We are pleased with this first step towards establishing a long-term commercial relationship between LG and Nemaska Lithium.

“The signing of this agreement is a clear vote of confidence by LG in our business plan and our capacity to be a long-term supplier of lithium hydroxide.”

“The signing of this agreement is a clear vote of confidence by LG in our business plan and our capacity to be a long-term supplier of lithium hydroxide.”

The delivery of the supplies will begin in October 2020 and continue for five years.

Provisions in the agreement grant Nemaska Lithium the right to reschedule the commencement of the supply period. The decision to reschedule will be based on the anticipated commissioning of the Shawinigan plant.

The latest offtake agreement comes after the company awarded the right of first offer to SoftBank Group to purchase up to 20% of production.

Nemaska Lithium has now either committed or agreed in principle for the offtake of more than 90% of its estimated 33,000 tonnes/y lithium carbonate equivalent (LCE) capacity.

In April this year, the firm signed a $150m streaming agreement with Orion Mine Finance II for the sale of 14.5% on all lithium hydroxide and lithium carbonate produced at the Shawinigan plant.

Project finances for construction, commissioning of the company’s Whabouchi lithium mine and Shawinigan electrochemical plant stand at up to $825m.

The company expects to develop a combined open pit and underground lithium mine at Whabouchi, with an estimated mine life of 33 years.

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Free Report
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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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