Infinity Lithium Corporation Ltd (ASX:INF) and LG Energy Solution have extended discussions relating to a potential offtake agreement for battery-grade lithium hydroxide from the San José Lithium Project in Extremadura, Spain.
Accordingly, the parties have renewed the Memorandum of Understanding (MoU) signed last year until December 22, 2023, to enter into a formal agreement.
Conditional agreement
Both parties had agreed last year that Infinity would supply lithium hydroxide from the San José Project to LG Energy over an initial five-year period.
Under that offer, LG Energy would gain priority access to 10,000 tonnes of product from San José each year, with the option to offtake additional volumes.
Any formal agreement is likely to be subject to standard conditions precedent for an offtake agreement, including Infinity entering commercial production and producing a product that meets the specifications required by the South Korean lithium-ion battery producer.
About Infinity Lithium
Infinity is seeking to develop its 75% owned San José Lithium Project in Spain to produce battery-grade lithium chemicals from a mica feedstock.
The San Jose deposit is a highly advanced, previously mined brownfield development opportunity representing the European Union’s (EU) second-largest lithium deposit.
The project would provide an essential component in the EU’s development of a vertically integrated lithium-ion battery supply chain to transition its automotive industry towards electric vehicles.