Nemaska Lithium achieves Phase 1 plant milestone and triggers $3M installment payment from Johnson Matthey Battery Materials
Nemaska Lithium Inc. has received a $3-million installment payment from Johnson Matthey Battery Materials Ltd (JMBM) of Candiac, Québec, a wholly owned subsidiary of Johnson Matthey Plc. The installment payment was made after JMBM’s review and acceptance of the Operation Manuals for the Phase 1 Plant and receipt by Nemaska Lithium of the certificate of authorization to operate the Phase 1 Plant.
The existing agreement between JMBM and Nemaska Lithium provides for an aggregate $12 million advance payment for goods and services. The final $3-million milestone installment will be payable by JMBM following receipt of battery grade lithium hydroxide from Nemaska Lithium.
The market for lithium salts is very tight and will continue to be so for the coming years, as 14 megafactories come on line around the world between now and 2020. We are well timed with new supply to meet this growing demand.—Guy Bourassa, President and CEO of Nemaska Lithium
Nemaska Lithium intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles, cell phones, tablets and other consumer products. The company is developing in Québec one of the most important spodumene lithium hard rock deposit in the world, both in volume and grade.
The spodumene concentrate produced at Nemaska Lithium’s Whabouchi mine will be shipped to the company’s lithium compounds processing plant to be built in Shawinigan, Québec. This plant will transform spodumene concentrate into high purity lithium hydroxide and carbonate.