Energy Exploration Technologies said it inked a deal with Trafigura, which will purchase 100,000 metric tons of battery-grade lithium products from EnergyX over the next 10 years.
The deal--described as a binding, definitive lithium-offtake agreement--represents more than $2 billion in revenue for EnergyX, based on current market prices of about $20,000 per metric ton, the company said Monday.
EnergyX said the deal marks its first publicly announced offtake agreement and a defining commercial milestone for the company.
"Offtake agreements are among the most important steps in taking a lithium project from development to production," Chief Executive Teague Egan said.
Egan added that the purchase commitment from Trafigura shows demand for EnergyX's products, as well as gives lenders and investors the revenue visibility they need to commit capital to commercial construction.
The agreement covers lithium products from both of EnergyX's first two flagship projects, with lithium carbonate supplied from Black Giant in Chile and lithium hydroxide from Project Lonestar in Texas, EnergyX said. A significant share will be directed to the U.S. battery supply chain.
The company added that it continues to be in discussions with additional prospective offtake partners across the battery, automotive and energy-storage markets.
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