Lithium company EnergyX says it has signed a binding offtake agreement with commodities trader Trafigura. Over ten years, EnergyX is expected to supply a total of 100,000 metric tons of lithium products from planned facilities in Chile and Texas. The contract’s estimated value of $2 billion is based on current lithium prices of around $20,000 per metric ton.
However, production facilities still need to be built. EnergyX requires additional funding for both plants. The agreement is expected to support its application for a $690 million loan from the Export-Import Bank of the United States.
Lithium From Chile and Texas
Trafigura is expected to purchase 5,000 metric tons each of lithium carbonate and lithium hydroxide annually. The contract requires payment even if Trafigura does not take delivery.
In Chile, EnergyX plans to produce 7,500 metric tons of lithium carbonate annually starting in 2028. Trafigura would purchase roughly two-thirds of that output. In Texas, initial lithium hydroxide production is scheduled to reach 15,000 metric tons annually starting in 2029. The agreed purchases represent one-third of the planned output there.
Trafigura plans to sell the products initially to Chinese customers. Over the longer term, the trader aims to expand its role in the U.S. market as the country’s battery supply chain develops.
EnergyX uses direct lithium extraction, or DLE, which involves various filtration processes. The company combines established technologies with readily available equipment and tests its processes at its laboratory in Austin.
