Offtake agreement for Lepidico

Thu 16 Dec 21, 3:45pm (AEST)
Lepidico plans to supply battery supply-chain & industrial market customers

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Key Points

  • The term of the agreement is an initial 7 years
  • The agreement should help ramp-up product approval phases
  • Traxys will also act as agent for 100% of the production of caesium sulfate solution

The share price of Lepidico (ASX: LPD) was up around 2.56% heading into the close on news the lithium explorer/developer had secured a lithium hydroxide offtake agreement with Luxembourg-based raw materials company, Traxys Group.

As a global provider of financial solutions for the mining, metals, and minerals industries, Traxys will act as principal to purchase and assume title and risk for delivery of lithium hydroxide and on-sell the products to end users.

There’s also an option for the agreement to be expanded to other products manufactured by Lepidico by mutual agreement.

Seven-year deal

The term of the agreement is the later of 7 years or the delivery of 35,000mt of lithium hydroxide with an option to extend by mutual agreement.

Traxys will also act as agent for 100% of the production of caesium sulfate solution — 400 tonnes per year — from the chemical plant.

In addition to supplying sales-marketing, logistics and trade finance services, Traxys will also act as agent for 100% of the production of caesium sulfate solution from the chemical plant.

Both parties will collaborate on customer selection and development, and end-user contract terms.

Under the company’s marketing strategy, Lepidico plans to supply both battery supply chain customers and industrial market customers, with a proportion of spot market sales.

Project ramp-up

This approach, adds Lepidico will aid the project ramp-up and product approval phases, market risk and establish a customer base that will support longer term growth plans for a phase two project.

Lepidico’s Managing Director Joe Walsh is excited to be working with Traxys through an open, transparent, and collaborative relationship.

“Traxys’ business provides an excellent fit with Lepidico’s target markets and the key strategic products of lithium hydroxide and caesium sulfate,” Walsh said.


Written By

Mark Story


Mark is an award-winning investigative financial journalist and editor who started his career working for Marathon Oil in London. He has a degree in politics/economics, a diploma in journalism and has completed the Institute of Directors course. Mark has worked on 70-plus newspapers and financial publications across Australia, NZ, the US, and Asia including: The Australian Financial Review, Money Magazine, Australian Property Investor and Finance Asia. Mark is passionate about improving the financial literacy of all Australians through the highest quality content.

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