Vulcan Energy Resources Limited announced that following the binding term sheet signed on 18 July 2021, conditional on the execution of a
Definitive Agreement, Vulcan Energy Resources Ltd. has signed a binding lithium hydroxide offtake agreement ("Agreement") with LG Energy Solution. LGES is the second largest battery maker in the world with over 20% market share 1 and supplies its products to leading global Original Equipment Manufacturers (OEMs). LGES is currently manufacturing lithium-ion batteries in Poland, US, China, and South Korea, and is looking at expanding its production capacity. LGES is a leading battery supplier to European OEMs. The Agreement is for an initial five-year term which can be extended by further five years, with a start of commercial delivery set for 2025. LGES will purchase between 41,000 to 50,000 metric tonnes of battery grade lithium chemicals over the duration of the agreement. Pricing will be based on market prices for lithium hydroxide. Conditions precedent include successful start of commercial operation and full product qualification.