Lithium producer EnergyX has inked a binding offtake agreement with global commodities trader Trafigura, committing to supply 100,000 metric tons of lithium products across a ten-year period from two planned production sites—one in Chile and another in Texas. The deal carries an estimated value of $2 billion, calculated using current market prices of approximately $20,000 per metric ton. Yet before any material can flow, EnergyX must construct both facilities and secure additional capital to fund the buildout. The agreement is intended to strengthen EnergyX's bid for a $690 million loan from the Export-Import Bank of the United States.
Lithium From Chile and Texas
Under the terms of the contract, Trafigura will take delivery of 5,000 metric tons annually, split evenly between lithium carbonate and lithium hydroxide. A key provision stipulates that Trafigura must pay for the material regardless of whether it actually accepts shipment.
EnergyX's Chilean operation is slated to begin producing 7,500 metric tons of lithium carbonate each year starting in 2028, with Trafigura purchasing roughly two-thirds of the annual output. The Texas facility will ramp up lithium hydroxide production to 15,000 metric tons annually beginning in 2029, with Trafigura's committed purchases representing one-third of that volume.
Trafigura intends to initially direct the lithium products toward Chinese buyers. Looking ahead, the trader plans to pivot its focus toward the U.S. market as the country's battery manufacturing ecosystem matures and expands.
EnergyX employs direct lithium extraction, or DLE, a method that relies on multiple filtration stages. The company pairs conventional technologies with readily obtainable industrial equipment, refining its approach through testing conducted at its laboratory facility in Austin.
Source: Battery-News
