ioneer announces lithium offtake agreement with Korean company EcoPro Innovation

RENO, Nev. and SYDNEY, June 29, 2021 / PRNewswire / –

Strong points:

  • Signing of a binding lithium supply agreement (“Agreement”) with the Korean company EcoPro Innovation Co. Ltd (“EcoPro”), a subsidiary of the EcoPro group of companies. The condition precedent of the Accord is the final investment decision (FID) of innovator.

  • EcoPro Group is the world’s second largest manufacturer of NCA cathode materials and a major supplier of cathodes to global battery manufacturers.

  • The three-year agreement covers a total of 7,000 tpa of lithium carbonate from the company’s Rhyolite Ridge Lithium-Boron operation in Nevada, comprising an initial and firm amount of 2,000 tpa (subject to ioneer FID) and an additional and optional amount of 5,000 tpa (subject to mutual agreement no later than Q1 2022).

  • The agreement marks the first lithium offtake agreement for the first three years of production and represents up to 34% of the annual production of lithium carbonate.

  • Rhyolite Ridge is the most advanced lithium development project in the United States and ioneer is well positioned to benefit from an expected rapid acceleration in demand for battery materials.

ioner general manager, Bernard rowe, mentionned:

“The agreement with EcoPro marks an important milestone for ioneer and will be a valuable partnership. This is our first lithium sampling agreement and the partnership with a recognized world leader in the manufacture of cathode materials testifies to the quality of our lithium carbonate. factory tour in mid-2019 and detailed testing of our product samples, we are delighted that EcoPro has found our materials to meet its exacting standards and determined that Innovator is the right partner to support EcoPro’s strategy battery grade lithium hydroxide production.

“Equally important is the common focus of pioneer and EcoPro on sustainability. EcoPro is committed to producing technologies that reduce emissions, and ioneer strengthens EcoPro through the production of these essential minerals with a significantly lower carbon footprint. “

President of EcoPro Innovation Anthony Kim, mentionned:

“As a trusted and respected company that seeks to improve the quality of life for humanity, we are delighted to partner with ioneer who shares a similar vision. Iioneer lithium carbonate is well suited for conversion to high purity lithium hydroxide with minimal environmental footprint. Rhyolite Ridge’s location in the United States, coupled with the growing importance of the electric vehicle industry, positions the two companies to play an important role in the electrification of transportation in the United States. “

ioneer Ltd (ioneer or the Company) (ASX: INR), an emerging supplier of lithium-boron, announced today that it has signed a binding off-take supply agreement (“Accord”) with EcoPro Innovation Co Ltd (“EcoPro”), for a term of three years, under which ioneer will supply EcoPro lithium carbonate from its Rhyolite Ridge Lithium- Boron Project (“Rhyolite Ridge”) at Nevada. The condition precedent of the Accord is the final investment decision (FID) of innovator.

Under the agreement, ioneer will deliver up to 7,000 tonnes per year (tpa) of lithium carbonate to EcoPro over a three-year period. The 7,000 tpa consists of an initial and firm amount of 2,000 tpa (subject to innovator’s FID) and a surcharge and optional of 5,000 tpa (subject to mutual agreement, no later than Q1 2022). EcoPro plans to convert the company’s lithium carbonate to high purity lithium hydroxide at its cathode plant to meet customer requirements.

ioneer is expected to produce on average annually about 20,600 tonnes of lithium carbonate, or about 22,000 tonnes of lithium hydroxide, as well as about 174,400 tonnes of boric acid per year over the life of the mine. 26 years.1. The dual production of lithium and boric acid allows ioneer not only to produce lithium in the United States, but also to do so at the bottom of the global cost curve. ioneer plans to start production at the end of 2023.

This agreement follows the previous signing of a first direct debit agreement and two sales and distribution agreements.2 for the production of boric acid, representing 100% of the withdrawals in the first year and more than 85% of the production of boric acid in the second and third years.

Key terms of the agreement with EcoPro include:

  • Product: Lithium carbonate

  • Duration of contract: 3 years

  • Volume: Up to 7,000 tonnes per year with a minimum of 2,000 tonnes per year (subject to the FID of innovator), additional volume (5,000 tonnes per year) by mutual agreement no later than 1st quarter 2022 (or at a later date mutually agreed upon by the parties).

  • Price term: CAF Busan, Korea.

  • Price: Adjusted quarterly on the basis of an agreed price formula.

  • Motto: USD per metric ton

  • Previous condition: Innovator’s final investment decision

This ASX version has been authorized by the general manager of pioneer, Bernard rowe.

CONTACTS

ABOUT IONEER

ioneer Ltd is the 100% owner of the Rhyolite Ridge Lithium-Boron project located at Nevada, United States, the only known lithium-boron deposit North America and one of only two known deposits in the world. Final feasibility study (DFS)3 finished in april 2020 confirmed Rhyolite Ridge as a world-class lithium and boron project that is expected to become a globally significant, long-lived, low-cost source of lithium and boron, vital for a sustainable future.

ABOUT ECOPRO INNOVATION CO. LTD

EcoPro Innovation Co Ltd is a subsidiary of the EcoPro Co., Ltd group of companies which includes EcoPro BM, EcoPro Gem and EcoPro Innovation. EcoPro Innovation specializes in lithium-ion batteries and filter frames. EcoPro Innovation has secured a value chain for lithium batteries by developing, manufacturing and processing technologies for lithium compounds, which is a basic material of lithium batteries.

1 Refer to ASX publication titled “ioneer Delivers Definitive Feasibility Study Confirming Rhyolite Ridge as World Class Lithium Boron Project” announced on April 30, 2020.

2 See ASX announcement titled “ioneer Substantially Completes Asian Boric Acid Distribution and Sales Network” posted on May 21, 2020.

3 Refer to ASX publication titled “ioneer Delivers Definitive Feasibility Study Confirming Rhyolite Ridge as World Class Lithium Boron Project” announced on April 30, 2020.

Cision

Show original content:https://www.prnewswire.com/news-releases/ioneer-announces-lithium-offtake-agreement-with-koreas-ecopro-innovation-301322690.html

SOURCE ionizer


Source link

About Emilie Brandow

Avatar

Check Also

We live in Guyana and not in North Korea where the leader is supreme

Mr. Editor, Flashback 2017! A lawyer, Anil Nanldall successfully represented Carvil Duncan, who was then …

Leave a Reply

Your email address will not be published. Required fields are marked *