US has second-longest mine development timeline in the world, S&P Global says
Mines in the US go from discovery to production in an average of 29 years.
Nemaska Lithium and Northvolt AB announced on Sunday that they have entered into a five year supply agreement in which Nemaska Lithium supplies battery grade lithium hydroxide to Northvolt.
Under the agreement Nemaska Lithium agreed to supply, through its wholly-owned subsidiary Shawinigan Transformation Inc., up to 5,000 metric tonnes per year of lithium hydroxide produced at its commercial plant. While Northvolt agreed to purchase, on a take-or-pay basis the set amount, nothing less than 3,500 tonnes for up to 5-years when commercial production at the Shawinigan Plant commences. Northvolt sealed the agreement with a promissory note of approximately $11, 5 M to Nemaska Lithium.
“With approximately 90% of its future annual production capacity already committed, Nemaska Lithium is currently more focused on properly executing the construction and upcoming commissioning of its project to satisfy its existing clients,” said Guy Bourassa, President & Chief Executive Officer of Nemaska Lithium.
Take or pay contracts like this are really important for the lithium industry’s evolution. Congrats to both Nemaska and Northvolt. https://t.co/edtZ4umSo0
— Simon Moores (@sdmoores) August 21, 2018
