- European Lithium’s (EUR) Austrian subsidiary ECM Lithium secures a lithium offtake deal with premium car maker BMW
- BMW will make an advance payment of US$15 million (A$22.4 million) to ECM, which will be repaid in equal set-offs against lithium hydroxide from the Wolfsberg project in Austria
- Subject to the start of commercial production, offtake supply is expected to begin in 2026 for six years, with an initial delivery of around 5000 metric tonnes in the first year
- ECM says securing the deal marks a “key milestone” and will enable it to focus on the final steps of development and construction at Wolfsberg
- European Lithium shares are up 16.67 per cent and trading at 8.4 cents at 2:23 pm AEDT
European Lithium (EUR) has secured a lithium offtake deal with premium car maker BMW.
European Lithium’s Austrian subsidiary, ECM Lithium, and BMW have signed a binding offtake agreement for the first offtake of battery-grade lithium hydroxide from ECM’s Wolfsberg project in Austria.
The agreement is subject to the successful start of commercial production and pertains to the delivery of around 50,000 metric tonnes of battery-grade lithium hydroxide over six years, with 5000 metric tonnes to be delivered in the first year and 9000 metric tonnes each year thereafter.
Supply is scheduled to begin in 2026 and the agreement could be extended for an extra three years.
BMW is due to make an advance payment of US$15 million (A$22.4 million) to ECM, which will be repaid in equal set-offs against the lithium hydroxide delivered.
Pricing will be based on fast market spot prices for lithium hydroxide, with a discount applied.
ECM said securing the deal marked a major milestone in its journey and would enable it to focus on the final steps of development and construction at Wolfsberg.
European Lithium shares were up 16.67 per cent and trading at 8.4 cents at 2:23 pm AEDT.