SYDNEY, April 12 AAP
April 12 2010, 09:03AM
Galaxy Resources Ltd has signed agreements to sell its battery grade lithium carbonate product to 13 major Chinese lithium cathode producers.
The offtake agreements, when added to a previous sales agreement with Mitsubishi Corporation, mean Galaxy's total output of 17,000 tonnes of lithium carbonate per year is committed, the Perth-based company said on Monday.
The terms of the deal were not disclosed.
Galaxy managing director Iggy Tan said the agreements "locked in the future growth potential of the Chinese and Japanese battery grade lithium carbonate market for the next five years".
"Almost all of the lithium cathode producers Galaxy has engaged with are significantly increasing capacity in the coming 12 to 24 months," Mr Tan said in a statement.
"By signing up for our product, these foundation customers are acknowledging the strength of the Galaxy project, particularly as it provides security of supply for battery grade lithium carbonate needed to underpin their expansion plans."
Supply will begin in 2011, the company said."