- Argosy Minerals (AGY) will ship 20 tonnes of high-purity lithium carbonate produced at its industrial-scale pilot plant to a Korean customer
- The company says the sale validates its ability to produce green battery quality lithium carbonate acceptable for high-specification international markets
- The Y. N. Chemical Company has given Argosy’s product the tick of approval for battery applications, opening up further opportunities in the Korean market
- AGY is planning an upgrade to a 2000-tonne per annum facility to meet projected demand
- Argosy Minerals is trading up 7.25 per cent to 7.4 cents
Argosy Minerals (AGY) will ship 20 tonnes of high-purity lithium carbonate produced at its industrial-scale pilot plant to a Korean customer.
The company says the sale validates its ability to produce green battery quality lithium carbonate acceptable for high-specification international markets.
The deal
Korean chemical company, Y. N Chemical (YNCC), has placed the order for product from Argosy’s Rincon Lithium Project in Argentina.
The agreed fixed price for the sale equates to the industry standard, S&P Global Platts’ assessed battery-grade lithium carbonate CIF North Asia price.
Payment for the shipment will be processed upon receipt of the original shipping. documents.
YNCC had already completed pre-shipment product sample testing confirming the high grade and low impurity levels of Argosy’s product.
The chemical company has affirmed the lithium carbonate is suitable for battery applications and other conventional uses.
Now Argosy’s product is tacitly certified for sale, the company is looking at a wide range of potential offtake arrangements in the Korean market.
Argosy Managing Director Jerko Zuvela said the company is leaps and bounds ahead of many of its competitors.
“Argosy’s ability to produce high-purity lithium carbonate product on an industrial scale rather than just laboratory samples is what separates Argosy’s technology expertise from all our junior peers,” Jerko said.
“Our high quality product is being recognised by customers across Asia and Europe. In addition, the sales price achieved is higher than many of the larger producers, reflecting the quality of and interest to secure our product,” he added.
Next steps
Argosy is working its way through the regulatory requirements for the shipment including customs approvals and shipping details, with the cargo expected to be on its way this month.
The company believes this first milestone shipment is a precursor to other larger offtake deals with YNCC.
As a result, Argosy is planning an upgrade to a 2000-tonne per annum facility to meet projected demand.
The company’s MD is confident Argosy will be able to fund and execute its strategy.
“Argosy’s ability to produce a high-purity battery quality product is being recognised by customers and differentiates our fast-track production strategy from many of the current lithium companies trying to progress with their project development,” Jerko said.
“With the lithium markets gaining traction recently, we are confident of a capex funding solution, and I am truly excited by the prospect of commencing construction on the 2,000-tonne per annum plant operation, further confirming Argosy’s status on the exclusive list of international battery-quality lithium carbonate product producers and exporters,” he added.
Argosy Minerals is trading up 7.25 per cent to 7.4 cents at 10:59 am AEDT.