EnergyX Signs $2 Billion Lithium Supply Deal With Trafigura

what happened

Lithium startup EnergyX has entered a binding $2 billion supply agreement with commodities trader Trafigura. Reuters reports that Trafigura will receive 100,000 metric tons of lithium from EnergyX over 10 years under a take-or-pay contract. The deal’s valuation is based on current lithium prices of about $20,000 per metric ton.

The agreement covers annual deliveries of 5,000 metric tons of lithium hydroxide and the same volume of lithium carbonate. Carbonate will come from the Black Giant project in Chile, while hydroxide will be produced at Project Lonestar in Texas. EnergyX expects to begin carbonate production in Chile in 2028 and hydroxide production in Texas in 2029.

EnergyX plans to produce 15,000 metric tons of lithium hydroxide annually in Texas, leaving Trafigura with 33% of that output. The Chilean operation is expected to produce 7,500 metric tons of lithium carbonate per year, of which Trafigura will take 66%. Newsmetry API describes the contract as EnergyX’s first publicly announced offtake agreement.

Founded in 2018 and backed by General Motors and Italy’s Eni, EnergyX is developing direct lithium extraction technology. The company needs additional funding to build its Chilean and Texan facilities, while the agreement supports its application for a $690 million loan from the US Export-Import Bank. Trafigura initially plans to sell the lithium to Chinese customers, with a longer-term aim of supplying US markets.

why it matters

The contract gives EnergyX committed demand and greater revenue visibility as it seeks financing for commercial facilities. It also highlights traders’ interest in direct-lithium-extraction projects as stationary battery storage drives additional demand.

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