“E3 Lithium” or the “Company,” a leader in Canadian lithium and Axens (“Axens”), a global provider of clean energy solutions and technologies, including Direct Lithium Extraction (“DLE”) from brines, have signed a non-binding memorandum of understanding (the “MOU”) that contemplates both the sale of lithium carbonate by E3 Lithium to Axens (the “Offtake”) and for Axens to supply E3 Lithium with a lithium selective sorbent (the “Sorbent”).
This strategic collaboration aims to leverage E3 Lithium’s leadership in lithium from brine development and Axens' advanced technologies to address the growing demand for secure supply chains for critical minerals.
Under the terms of the MOU, each company will qualify the products with the goal of a mutually beneficial collaboration. Upon completion of the qualification, the MOU outlines the proposal to execute two separate agreements, where the intent is that neither agreement is dependent on the other. Under one agreement, E3 Lithium will supply lithium carbonate from the Clearwater Project in the Alberta, Canada for use by Axens in Europe. Under the second agreement, Axens will supply their proprietary lithium selective Sorbent for use in the E3 Lithium’s Direct Lithium Extraction processes.
This MOU is an initial step towards binding definitive agreements with certain milestones set out for E3 Lithium and for Axens that will inform the Definitive Agreements for each the Offtake and the Sorbent.
The milestones include:
• E3 Lithium to produce battery-grade lithium at its Demonstration Facility for review through Axens qualification process; and,
• E3 Lithium to validate the Sorbent through standard testing and qualification for use within E3’s DLE processes.
Both companies are working in good faith to complete the qualification as quickly as possible. Both Axens and E3 Lithium have committed to working together on funding options that would be discussed and defined through the respective definitive agreements.
The MOU with Axens represents a mutually beneficial and symbiotic agreement that significantly de-risks the Clearwater Project. Axens has the proven capabilities to produce sorbent on a commercial scale and de-risks E3 Lithium’s supply chain for the critical reagent. E3 Lithium’s ability to produce battery-grade lithium carbonate on site without secondary processing enables a direct sale into the European market, a key differentiator for the Company. We are very excited to be collaborating with the team at Axens as we work through the mutual qualification objectives.
This agreement with E3 Lithium greatly supports Axens' efforts to develop a high-performance sorbent for Direct Lithium Extraction. More generally, it shows the interest of industrial players in Axens' technologies and products in the field of low carbon mobility. Axens is excited to continue moving forward with E3 Lithium to advance our respective projects on battery materials developments in the common interest of both companies.
About E3 Lithium
E3 Lithium is a development company with a total of 21.2 million tonnes of lithium carbonate equivalent (LCE) Measured and Indicated1 as well as 0.3 Mt LCE Inferred mineral resources in Alberta and 2.5 Mt LCE Inferred mineral resources in Saskatchewan. The Clearwater Pre-Feasibility Study outlined a 1.13 Mt LCE proven and probable mineral reserve with a pre-tax NPV(8%) of USD 5.2 Billion with a 29.2% IRR and an after-tax NPV(8%) of USD 3.7 Billion with a 24.6% IRR.
About Axens
The Axens Group (www.axens.net) offers a complete range of solutions for the conversion of oil and biomass into cleaner fuels, the production and purification of major petrochemical intermediates, the chemical recycling of plastics, natural gas treatment and conversion options, water treatment and carbon capture. Their offer includes technologies, equipment, furnaces, modular units, catalysts, adsorbents and related services. Axens is ideally positioned to cover the entire value chain, from feasibility studies to start-up and monitoring of units throughout their lifecycle. This unique position guarantees optimum performance and a reduced environmental footprint. Axens' international offering is based on highly qualified human resources, modern production facilities and an extensive global network for industrial, technical support and sales services. Axens is an IFP Energies Nouvelles Group company.
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