ioneer signs binding lithium offtake agreement with PPES

PPES is a battery production company established through joint-investment between Toyota, one of the world’s largest automotive manufacturer by revenue, and Panasonic, a leading battery manufacturer.

Under the agreement, ioneer will deliver 4000 tpy of lithium carbonate to PPES over a five-year term. PPES will utilise ioneer’s lithium carbonate to produce batteries for use in US electric vehicles.

ioneer is expected to produce an annual average of approximately 20 600 t of lithium carbonate/hydroxide along with approximately 174 400 t of boric acid per year over the Rhyolite Ridge project’s 26-year life. 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 2025 to support urgent requirements for battery materials in the US.

This agreement follows the two earlier binding offtake agreements and, in total represents the completion of pre-production lithium carbonate supply commitments it currently intends to make for Rhyolite Ridge.

James Calaway, ioneer’s Executive Chairman, comments:

“ioneer is grateful to announce another key milestone for our company with a lithium carbonate offtake agreement with PPES. PPES is a world-class organisation, and we look forward to being their trusted partner. This and the previously announced Ford and EcoPro agreements solidify ioneer’s focus on the US Electric Vehicle supply chain infrastructure. We look forward to providing lithium materials to PPES and all our offtake partners for their growth in the EV global market.”

Hiroaki Koda, PPES’s President, comments:

“I am delighted to have a great partnership with ioneer in the battery supply chain, that can promote vehicle electrification toward realising a carbon-neutral society. Having an agreement with ioneer provides PPES a first step in securing a US supply of lithium, one of the most important parts for corresponding with the fast growing electrified vehicle industry. We have confidence in ioneer’s technology of refining sedimentary sourced lithium and their competitiveness, and are expecting it to strengthen the PPES supply chain.”

Read the article online at: https://www.globalminingreview.com/trade-transport/02082022/ioneer-signs-binding-lithium-offtake-agreement-with-ppes/