Energy Exploration Technologies, commonly known as EnergyX, has signed a binding 10-year agreement to supply commodities trader Trafigura with 100,000 tonnes of battery-grade lithium products from planned projects in Chile and Texas.
Reuters estimated the EnergyX lithium offtake at approximately $2 billion using lithium prices near $20,000 per tonne. The figure does not represent an upfront investment or fixed contract payment, and the agreement’s ultimate value will depend on market prices and delivered volumes.
Agreement Covers Two Lithium Products
Trafigura agreed to purchase approximately 5,000 tonnes of lithium carbonate and 5,000 tonnes of lithium hydroxide annually over the contract’s 10-year term.
The lithium carbonate would come from EnergyX’s Black Giant project in Chile’s Antofagasta region. Lithium hydroxide would be supplied by the company’s Lonestar project in Texas.
Trafigura said the agreement covers 66% of planned Phase 1 output from Black Giant and approximately 30% of Phase 1 production from Lonestar.
A significant portion of the material is ultimately expected to enter the US battery supply chain. Reuters reported that Trafigura initially plans to sell the lithium to customers in China while working toward greater US distribution as domestic battery manufacturing expands.
Production Has Not Started
Neither Black Giant nor Lonestar is currently producing lithium.
EnergyX is targeting commercial-scale production at Black Giant in 2028 and Lonestar in 2029. Those dates remain subject to financing, construction, permitting, commissioning and successful operation of the company’s extraction and refining technology.
Black Giant’s initial phase is designed to produce approximately 7,500 tonnes of lithium carbonate annually. Eni agreed in July to acquire a 25% interest in the project company through a phased investment totaling $225 million.
The larger development plan targets 52,500 tonnes of lithium carbonate equivalent annually after a second expansion phase scheduled for 2030.
In Texas, EnergyX plans to begin with approximately 15,000 tonnes of lithium hydroxide production annually. Trafigura’s contracted volume would represent roughly one-third of that planned output.
Offtake Supports Project Financing
The agreement is structured as a take-or-pay contract, meaning Trafigura would be required to purchase or pay for contracted volumes under the agreement’s terms.
Long-term offtake arrangements can provide lenders with greater visibility into future revenue, but they do not finance construction by themselves.
EnergyX still requires additional capital to build the Chilean and Texas facilities. Reuters reported that the agreement supports the company’s application for a proposed $690 million loan from the US Export-Import Bank, along with efforts to secure other project financing.
EnergyX and Trafigura are both privately held companies.
DLE Technology Faces Commercial Test
EnergyX plans to use its proprietary direct lithium extraction technology at both projects.
DLE uses filtration, adsorption or related processes to recover lithium from brine without relying primarily on large evaporation ponds. EnergyX has tested its system at laboratory and demonstration scale, but sustained commercial performance at Black Giant and Lonestar has not yet been demonstrated.
Actual production rates, recoveries, operating costs and product quality could differ from current projections. Delays or underperformance at either project would also affect the volumes available to Trafigura.
The agreement provides EnergyX with a large prospective customer, but commercial deliveries remain dependent on projects that still require financing, construction and commissioning.
Sources
- Trafigura Signs 10-Year Lithium Offtake Agreement With EnergyX
- Reuters — EnergyX Signs Binding Lithium Supply Deal With Trafigura
- Eni Invests in EnergyX’s Black Giant Lithium Project
- EnergyX Project and Technology Overview
Editorial Disclosure
This article was prepared from publicly available company disclosures and news reports. Mining Markets Report received no compensation from EnergyX, Trafigura or Eni for its preparation or publication and has no disclosed business relationship with the companies.
The author and publisher have no financial interest in EnergyX or Trafigura. Both companies are privately held.
The approximately $2 billion agreement value is an estimate based on current lithium prices and the announced contract volume. It is not a disclosed fixed payment, upfront investment or guaranteed revenue amount.
Statements concerning financing, construction, production timing, output, recoveries, product quality, customer markets and project economics are forward-looking. Neither Black Giant nor Lonestar is producing lithium, and EnergyX’s technology has not been commercially demonstrated at either project.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Mining and technology investments can be highly speculative. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
