Australia's Core Lithium Ltd said on Thursday it is going to sell additional spodumene concentrate to Chinese chemicals firm Sichuan Yahua Industrial Group Co Ltd, a supplier of electric vehicle EV battery industry.
Demand for spodumene or lithium ore from the EV battery industry is expected to boom this decade as the green energy transition gains momentum. Sichuan Yahua produces lithium salts that are used in EV batteries.
Sichuan Yahua, an existing customer of Core Lithium, will buy 18,500 tonnes of spodumene concentrate, in addition to its previous deal to purchase 300,000 tons over four years.
Core Lithium agreed to sell the first spodumene concentrate, a 3,500 tonne parcel, produced at its Finniss project in Northern Territory, as well as an additional 15,000 tons.
Sichuan Yahua will pay 80 percent of the consideration for the 15,000 tonne shipment, which Core Lithium says will help boost cash flows as it continues to ramp up its operations.