Core Lithium Ltd (ASX:CXO) is well positioned to take advantage of strong global demand and constrained lithium supply with its Finniss Project, according to the company’s CEO Gareth Manderson.
“The recent DSO sale, predicted commencement of lithium concentrate sales in H1 2023 and an increasing lithium price environment indicate that Core Lithium is well positioned to capitalise on the high demand and current shortage of available battery-grade lithium spodumene concentrate,” he said.
Recent milestones
Among the recent milestones have been the recent official opening of the Finniss Lithium Mine near Darwin in Australia’s Northern Territory and an underwritten share placement to fund accelerated resource definition.
These statements come after the date for concluding a term sheet for a potential product purchase agreement with Tesla (NASDAQ:TSLA) passed on October 26, 2022, without the agreement being completed.
Strong demand
The company said that the recent sale of 15,000 tonnes of direct shipping ore (DSO) showed strong international demand for Finniss lithium.
This DSO sale was tendered on a CIF basis to several pre-screened participants active in the lithium-ion battery supply chain.
“Demand for spodumene DSO material was strong, evidenced by the price achieved,” Core Lithium stated.
The DSO is expected to be shipped before the end of the year, in advance of spodumene concentrate production in the first half of 2023.
Offtake deals
Agreements are in place with Ganfeng and with Yahua that bring total concentrate sales under offtake contracts to about 80% of the Finniss Lithium Project production over the first four years of operations.
“Global lithium demand is forecast to stay strong for the foreseeable future and Core continues to receive strong inbound interest in lithium spodumene concentrate from the Finniss Lithium Project,” the company added.