ioneer Announces Lithium Offtake Agreement with Korea's EcoPro Innovation
AsiaNet 90380
RENO, Nev. and SYDNEY, June 30, 2021 /PRNewswire=KYODO JBN/ --
Highlights:
-- Binding lithium offtake supply agreement ("Agreement") signed with Korea's
EcoPro Innovation Co. Ltd ("EcoPro"), a subsidiary of the EcoPro Group of
Companies. The condition precedent of the Agreement is ioneer's final
investment decision (FID).
-- EcoPro Group is the world's second largest NCA cathode materials
manufacturer and a major cathode supplier for global battery
manufacturers.
-- The three-year Agreement is for a total of 7,000 tpa of lithium carbonate
from ioneer's Rhyolite Ridge Lithium-Boron operation in Nevada, comprising
an initial and firm 2,000 tpa (subject to ioneer's FID) and an additional
and optional 5,000 tpa (subject to mutual agreement no later than Q1
2022).
-- The Agreement marks ioneer's first lithium offtake agreement and
represents up to 34% of ioneer's annual lithium carbonate output for the
first three years of production.
-- Rhyolite Ridge is the most advanced lithium development project in the US
and ioneer is well positioned to benefit from an expected rapid
acceleration in demand for battery materials.
ioneer Managing Director, Bernard Rowe, said:
"The Agreement with EcoPro marks a significant milestone for ioneer and
will be a valuable partnership. It is our first lithium offtake agreement
and partnering with a recognised world leader in cathode materials
manufacturing is a testament to the quality of our lithium carbonate.
Following a pilot plant tour in mid-2019 and detailed testing of our
product samples, we are pleased that EcoPro found that our materials meet
its exacting standards and determined that ioneer was the right partner to
support EcoPro's strategy for producing battery grade lithium hydroxide.
"Equally important is ioneer and EcoPro's shared focus on sustainability.
EcoPro is committed to the production of technologies that reduce
emissions, and ioneer is empowering EcoPro through the production of these
critical minerals with a significantly lower carbon footprint."
EcoPro Innovation President Anthony Kim, said:
"As a trusted and respected company that seeks to improve the quality of
life for mankind, we are pleased to partner with ioneer who share a
similar vision. ioneer's lithium carbonate is well suited for conversion
to high purity lithium hydroxide with a minimal environmental footprint.
The US location of Rhyolite Ridge, coupled with the growing importance of
the EV sector, positions both companies to play an important role in the
electrification of transportation in the USA."
ioneer Ltd (ioneer or the Company) (ASX: INR), an emerging lithium–boron
supplier, today announced that it has signed a binding offtake supply agreement
("Agreement") with EcoPro Innovation Co Ltd ("EcoPro"), for a three-year term,
in which ioneer will supply EcoPro with lithium carbonate from its Rhyolite
Ridge Lithium-Boron Project ("Rhyolite Ridge") in Nevada. The condition
precedent of the Agreement is ioneer's final investment decision (FID).
Under the Agreement, ioneer will deliver up to 7,000 tonnes per annum (tpa) of
lithium carbonate to EcoPro over a three-year term. The 7,000 tpa comprises an
initial and firm 2,000 tpa (subject to ioneer's FID) and an additional and
optional 5,000 tpa (subject to mutual agreement, no later than Q1 2022). EcoPro
expects to convert ioneer's lithium carbonate into high purity lithium
hydroxide at its cathode plant to meet its customers' requirements.
ioneer is expected to produce an annual average of approximately 20,600 tonnes
of lithium carbonate, or approximately 22,000 tonnes of lithium hydroxide,
along with approximately 174,400 tonnes of boric acid per year over the 26-year
mine life(1). The dual production of lithium and boric acid allows ioneer to
not only produce lithium in the US, but to do so at the very bottom of the
global cost curve. ioneer anticipates commencing production in late 2023.
This Agreement follows the earlier signing of an initial offtake agreement and
two sales and distribution agreements2 for boric acid production, representing
100% of offtake in year one and more than 85% of boric acid production in years
two and three.
Key terms of the Agreement with EcoPro include:
-- Product: Lithium carbonate
-- Contract Duration: 3 Years
-- Volume: Up to 7,000 tonnes per annum with a minimum of 2,000 tonnes per
annum (subject to ioneer's FID), additional volume (5,000 tonnes per
annum) by mutual agreement no later than Q1 2022 (or such later date
mutually agreed by the Parties).
-- Price Term: CIF Busan, Korea.
-- Price: Adjusted quarterly based on agreed price formula.
-- Currency: USD per metric ton
-- Condition Precedent: ioneer's Final Investment Decision
This ASX release has been authorised by ioneer Managing Director, Bernard Rowe.
CONTACTS
Bernard Rowe
ioneer Ltd
Managing Director
T: +61 419 447 280
browe@ioneer.com
Jane Munday
FTI Consulting
Investor & Media Relations
(Australia)
T: +61 488 400 248
jane.munday@fticonsulting.com
Grace Altman
FTI Consulting
Investor & Media Relations
(USA)
T: +1 917 208 9352
grace.altman@fticonsulting.com
ABOUT IONEER
ioneer Ltd is the 100% owner of the Rhyolite Ridge Lithium-Boron Project
located in Nevada, USA, the only known lithium-boron deposit in North America
and one of only two known such deposits in the world. The Definitive
Feasibility Study (DFS)(3) completed in April 2020 confirmed Rhyolite Ridge as
a world-class Lithium and Boron Project that is expected to become a globally
significant, long-life, low-cost source of lithium and boron vital to a
sustainable future.
ABOUT ECOPRO INNOVATION CO. LTD
EcoPro Innovation Co Ltd is a subsidiary of The EcoPro Co., Ltd Group of
Companies which include EcoPro BM, EcoPro Gem and EcoPro Innovation. EcoPro
Innovation specializes in lithium-ion batteries and filter frames. EcoPro
Innovation has secured a value chain for lithium cells by developing,
manufacturing and processing technologies for lithium compounds, which is a
core material of lithium cells.
(1) Refer ASX release titled 'ioneer Delivers Definitive Feasibility Study that
Confirms Rhyolite Ridge as a World-Class Lithium and Boron Project' announced
30 April 2020.
(2) Refer to ASX announcement entitled 'ioneer Substantially Completes Asian
Boric Acid Distribution and Sales Network' released 21 May 2020.
(3) Refer ASX release titled 'ioneer Delivers Definitive Feasibility Study that
Confirms Rhyolite Ridge as a World-Class Lithium and Boron Project' announced
30 April 2020.
SOURCE: ioneer
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