Agreement covers 100,000 metric tons of battery-grade lithium products from projects in Chile and the US

Trafigura has signed a binding 10-year offtake agreement with Energy Exploration Technologies,  for 100,000 metric tons of battery-grade lithium products from its projects in the US and Chile.

Under the agreement, Trafigura will purchase lithium carbonate from EnergyX’s Project Black Giant in Antofagasta, Chile and lithium hydroxide from Project Lonestar in Texas, US. Trafigura has agreed to purchase 66% of Phase 1 offtake from Black Giant and 30% of Phase 1 offtake from Lonestar. A significant share of the volumes are expected to supply the US battery supply chain.

EnergyX produces lithium using its proprietary direct lithium extraction (DLE) technology. EnergyX is targeting commercial-scale production at Black Giant in 2028, and at Lonestar in 2029.

The agreement supports the bankability of both projects, with offtake being a key requirement for EnergyX’s financing from the U.S. EXIM Bank and additional project finance lenders.

Daniel von Arx, Head of Battery Metals at Trafigura, said: “We are pleased to support EnergyX as it develops its lithium projects in Chile and the US. Long-term offtake is an important step in moving projects into production, and this agreement reflects our ability to help bring strategic critical minerals projects online and build secure, diversified supply chains. Drawing on our logistics network and market expertise, we look forward to supplying these battery-grade lithium products to customers, supporting supply chains for the US automotive and energy storage industries.”

Teague Egan, Founder and CEO of EnergyX, said: “Offtake agreements are among the most important steps in taking a lithium project from development to production. A long-term purchase commitment from a counterparty of Trafigura’s scale and credit quality shows that the market wants EnergyX’s product. It also gives lenders and investors the revenue visibility they need before committing capital to commercial construction.”