Nemaska Lithium Finalizes a 5-Year Supply Agreement With Northvolt
QUEBEC CITY, Aug. 20, 2018 (GLOBE NEWSWIRE) -- Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”) (TSX:NMX) (OTC:NMKEF) and Northvolt AB ("Northvolt") are pleased to announce the signature of an agreement providing for the supply of battery grade lithium hydroxide by the Corporation to Northvolt.
On April 27, 2018 Nemaska Lithium announced an agreement in principle with Northvolt. This agreement is now superseded by a definitive 5-year supply agreement. Under this agreement, Nemaska Lithium agrees to supply, through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., and Northvolt agrees to purchase, on a take-or-pay basis, up to 5,000 but not less than 3,500 metric tonnes per year of lithium hydroxide produced at the Corporation's commercial plant in Shawinigan, for a 5-year supply period commencing upon the start of commercial production at both the Shawinigan Plant and Northvolt's projected Skellefteå factory in Sweden (the "N Factory").
"We are very pleased to have moved this agreement in principle to a firm contract. Northvolt is not the only one to share our vision of a green energy future powered by lithium ion batteries. Our ongoing discussions with buyers reflect a very tight market for high purity lithium hydroxide and lithium carbonate. We continue to field inbound calls looking for supply of battery grade lithium hydroxide and carbonate. However, 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.
Bourassa continued, “As we continue full speed ahead with the construction, we believe the value in Nemaska Lithium is supported by its strong fundamentals, including: a world class lithium deposit; a proprietary state of the art electrochemical lithium extraction process and strong off take agreements with reliable end users. We have attracted many talented people with past project construction and operations experience and we continue to build on that team. From an intrinsic value perspective, Nemaska Lithium has never been in a better shape and going forward, we strongly believe these strong fundamentals will eventually be properly reflected.”
About Nemaska Lithium
Nemaska Lithium is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide and lithium carbonate. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, Nemaska Lithium intends to facilitate access to green energy, for the benefit of humanity.
The Corporation will be operating the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade. The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a unique membrane electrolysis process for which the Corporation holds several patents.
Nemaska Lithium is a member of the S&P/TSX SmallCap Index, S&P/TSX Global Mining Index, S&P/TSX Global Base Metals Index, S&P/TSX Equal Weight Global Base Metals Index, and the MSCI Canada Small Cap Index. For more information, visit www.nemaskalithium.com or www.twitter.com/Nemaska_Lithium.
Northvolt was founded in 2016 with the mission to build the world's greenest battery, with a minimal carbon footprint and the highest ambitions for recycling, to enable the European transition to renewable energy. Northvolt's team of experts is building the next generation battery factory focused on process innovation, scale and vertical integration. Once completed, it will be Europe's largest battery factory and will produce 32 GWh worth of battery capacity annually. For more information, please visit www.northvolt.com.
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not limited to, those relating to the supply by the Corporation to Northvolt of 3,500 to 5,000 metric tonnes per year of battery grade lithium hydroxide, constitute "forward-looking information" and "forward-looking statements" within the meaning of certain securities laws and are based on expectations and projections as of the date of this press release. Certain important assumptions by the Corporation in making forward-looking statements include, but are not limited to, the start of commercial production at both the Shawinigan Plant and Northvolt's projected Skellefteå factory in Sweden.