- European Lithium (EUR) partners with Obeikan Investment Group to build and operate a hydroxide plant in Saudi Arabia
- Through a non-binding memorandum of understanding, the parties will negotiate suitable commercial terms for the construction and operation of a hydroxide plant
- While the aim is to enter a 50:50 joint venture (JV) partnership, there is no assurance that a binding agreement will be executed
- However, EUR Chairman Tony Sage says entering a JV would enable “huge energy cost savings” that would make its Wolfsberg project in Austria more robust
- EUR shares were up 7.69 per cent trading at 8.4 cents at 2:04 pm AEDT
European Lithium (EUR) has partnered with Obeikan Investment Group to build and operate a hydroxide plant in Saudi Arabia.
The parties signed a non-binding memorandum of understanding and will work together to negotiate suitable commercial terms for the construction and operation of a hydroxide plant.
While the aim is to enter a 50:50 joint venture (JV) partnership, there is no assurance that a binding agreement will be executed.
However, EUR Chairman Tony Sage said entering a JV with Obeikan would enable “huge energy cost savings” that would make European Lithium’s Wolfsberg project in Austria more robust.
“The JV with Obeikan will allow EUR to focus its efforts on building the facilities to start mining concentrate in addition to benefiting from the JV opportunities,” he said.
Obeikan’s CEO said the MoU with EUR was a “great step ahead” in “further strengthening the Saudi Australian economic collaboration”, in-line with its strategy of accelerating sustainability within the energy field.
Obeikan Investment Group is one of Saudia Arabia’s 100 largest companies and has operations across 16 countries.
The company is touted as a global leader of industry across different sectors including manufacturing, health, technology and education.
In other news, European Lithium attended the Future Minerals Forum in Saudi Arabia with the view to foster and develop opportunities for long-lasting partnerships.
EUR shares were up 7.69 per cent trading at 8.4 cents at 2:04 pm AEDT.