Infinity Lithium Corporation has extended its Memorandum of Understanding with South Korean lithium-ion battery producer LG Energy Solutions for lithium hydroxide from its proposed San José project in Spain with the extension due to mature in December.
The two companies originally signed a non-binding agreement in June last year that gives LG first rights to 10,000 tonnes per annum of product with additional volumes subject to negotiations and agreement.
Infinity says any formal agreement is subject to standard conditions, including the San José project producing lithium hydroxide that meets LG’s requirements.
The original MOU refers to the potential supply of product for an initial five-year period that may extend five more years.
The purchase price will be based on the market prices for lithium hydroxide, subject to agreement and finalised under the terms of a binding offtake agreement.
LG Energy is a global leader delivering advanced lithium-ion batteries for electric vehicles and energy storage solutions.
The San José lithium project, near the city of Cáceres in Spain, has one of Europe's largest JORC-compliant hard-rock lithium deposits with a 111 million tonne resource going 0.61 per cent lithium oxide.
Infinity, through its wholly owned Spanish subsidiary Extremadura New Energies, has been invited to present its redesigned development proposal for San José to the Extremadura Regional Government and the Cáceres City Council after switching to an underground mine plan.
The company originally proposed an open-pit mine, however last year it did a scoping study to evaluate an underground-only mining operation minimising the impact on the environment and community stakeholders.
Infinity says the study shows the potential for an underground mine to generate increased quantities of battery-grade lithium chemicals whilst reducing the need for surface tailings and preventing any major visible impact from the mine.
The project is a fully integrated industrial operation centred on the manufacturing of battery-grade lithium compounds from a mica feedstock.
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