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- Lepidico (LPD) has entered a non-binding letter of intent with Hubei Baijierui Advanced Materials (BJR) for the supply of lithium, caesium and rubidium from the company’s planned phase one plant in Abu Dhabi
- Based in China, BJR specialises in manufacturing a broad range of high-quality purity salts, which the company supplies to both domestic Chinese and international customers
- Last year BJR successfully tested a caesium-rubidium, intermediate product from LPD’s pilot plant
- Further product evaluation is now planned alongside consideration of commercial terms for off-take
- The product offtake strategy will supply chemicals to fine chemicals manufacturers and the electric vehicle supply chain
- Lepidico shares are trading flat at 2.3 cents
Lithium developer Lepidico (LPD) has entered a non-binding letter of intent with Hubei Baijierui Advanced Materials (BJR) for the supply of lithium, caesium and rubidium from the company’s planned phase one chemical plant in Abu Dhabi.
Based in China, BJR specialises in manufacturing a broad range of high-quality purity salts, which the company supplies to both domestic and international customers.
Last year, the manufacturer successfully tested a caesium-rubidium, intermediate product from LPD’s pilot plant and has now planned further product evaluation alongside consideration of commercial terms for offtake.
Lepidico Managing Director Joe Walsh said the company looks forward to establishing a mutually rewarding long-term relationship with BJR.
“Lepidico’s phase one project provides a unique opportunity for the supply of caesium and lithium sulphates for both industrial use and/or conversion to fine speciality chemicals,” he said.
“The company’s lithium marketing strategy is to supply both industrial users such as BJR and lithium-ion battery supply chain manufacturers via direct sales agreements, with a smaller proportion of output allocated to other industrial users and spot market sales via agency agreement to broaden the customer base,” Joe explained.
“This approach is designed to both manage off-take risk and establish a customer base that will support Lepidico’s longer-term growth plans for a phase two project.
“This strategy also contemplates a U.S. supply nexus to support the debt funding envisaged under the formal mandate with International Development Finance Corporation,” the Managing Director added.
Lepidico shares are trading flat at 2.3 cents at 10:04 am AEST.
