Lithium Ionic Secures Offtake Agreements with Leading Lithium Producers for Bandeira Project

TSXV: LTH | OTCQX: LTHCF | FSE: H3N

Overview

Lithium Ionic Corp. announced it has secured five-year binding take-or-pay offtake agreements with two leading integrated lithium producers for spodumene concentrate production from its 100%-owned Bandeira Lithium Project in Minas Gerais, Brazil. The agreements provide for a combined 170,000 tonnes per annum of spodumene concentrate supply.

The two offtake partners are Sichuan Yahua Industrial Group Co., Ltd. ("Yahua Group"), one of the world's largest lithium hydroxide producers, and Grand Chen Resources Pte. Ltd., a vertically integrated lithium supply chain participant established in 2013. Combined, the agreements include a US$20 million pre-payment facility and a minimum floor price of US$1,000 per tonne on a 6% spodumene concentrate (SC6) grade basis, with no maximum price limit and no discount to spot pricing.

Key Highlights

• Five-year binding take-or-pay offtake agreements totaling 170,000 tonnes per annum of spodumene concentrate
• Floor price of US$1,000 per tonne (SC6 grade basis), indexed to prevailing market prices with no cap and no discount to spot
• US$20 million combined pre-payment facility from the two offtake partners
• Yahua Group customers include Tesla, CATL, LG Energy Solution, BMW, and BYD
• Grand Chen Resources maintains an established international presence in Africa and Asia with customers including BYD

Strategic Context

According to the company, the offtake agreements represent a significant commercial milestone for the Bandeira Project. Yahua Group is described as one of the world's largest lithium hydroxide producers, with vertically integrated operations spanning resource development, refining, and supply. The company also noted Yahua's partnership with LG Energy Solution for a facility in Morocco targeting 50,000 tonnes per annum of lithium hydroxide production.

Grand Chen Resources, established in 2013, was described by Lithium Ionic as a vertically integrated participant in the lithium supply chain with capabilities in resource acquisition, processing, and supply, and an international presence across Africa and Asia.

Blake Hylands, P.Geo., CEO of Lithium Ionic, stated that the company is pleased to be partnering with Yahua and Grand Chen, highlighting their commitment to securing long-term spodumene concentrate supply from the Bandeira Project.

What to Watch Next

• Progress on Bandeira Project permitting and construction readiness milestones
• Deployment of the US$20 million pre-payment facility and project financing updates
• Further commercial developments as the company advances toward production

About Lithium Ionic Corp.

Lithium Ionic Corp. is a Canadian lithium development company focused on advancing the Bandeira Lithium Project located in the Minas Gerais state of Brazil, known as "Lithium Valley." The company is focused on engineering de-risking, permitting advancement, commercial planning, and construction readiness for the project. Lithium Ionic trades on the TSXV under the symbol LTH, on the OTCQX under LTHCF, and on the Frankfurt Stock Exchange under H3N.

Read the full press release here.

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