- Lepidico (LPD) has signed a letter of intent (LOI) to supply products from its phase one project to multinational distributor Bisley and Company
- The non-binding LOI covers the supply of lithium hydroxide, sulphate of potash and amorphous silica, as well as other products from Lepidico’s planned phase one project
- Lepidico says this deal is designed to both manage offtake risk and establish a customer base that will support its longer-term growth plans for phase two of the project
- LPD shares are in the grey, last trading at 1.8 cents
Lepidico (LPD) has signed a letter of intent to supply products from its phase one project to multinational distributor Bisley and Company.
The non-binding letter of intent is for the supply of lithium hydroxide, sulphate of potash (SOP) and amorphous silica, as well as other products from Lepidico’s planned phase one project.
The project saw the construction of integrated project plants in both Namibia and the United Arab Emirates.
Bisley has a global network of costumers and is well placed to market up to 2000 tonnes per annum of lithium hydroxide into industrial markets. The company is already considered a well-established distributor of many of the products Lepidico will produce from its chemical plant in Abu Dhabi, with a focus on the Middle East, Asia Pacific and North America.
The amorphous silica volumes and standard operating procedures for the company are yet to be defined.
Lepidico says this deal is designed to both manage offtake risk and establish a customer base that will support its longer-term growth plans for phase two of the project.
“The relationship with Bisley fits with the company’s lithium marketing strategy to supply industrial users and lithium-ion battery supply chain manufacturers via direct sales agreements, with a smaller proportion of output allocated to other industrial users and spot market sales via agency agreement to broaden the customer base,” said Lepidico’s Managing Director, Joe Walsh.
“This strategy also contemplates a U.S. supply nexus to support the debt funding envisaged under the formal Mandate with International Development Finance Corporation.”
Lepidico shares are in the grey, last trading at 1.8 cents at 9:31 am AEST.