Adds details of supply deal
March 23 (Reuters) - Australia's Core Lithium Ltd CXO.AX said on Thursday it agreed to sell additional spodumene concentrate to Chinese chemicals firm Sichuan Yahua Industrial Group Co Ltd 002497.SZ, a supplier to the electric vehicle (EV) battery industry.
Demand for spodumene, or lithium ore, from the EV battery industry is expected to boom this decade as the green energy transition gains momentum. Sichuan Yahua produces lithium salts, which has applications in EV batteries.
Sichuan Yahua, an existing customer of Core Lithium, will buy 18,500 tonnes of spodumene concentrate, in addition to its prior deal to purchase 300,000 tonnes over four years.
Core Lithium agreed to sell the first spodumene concentrate, a 3,500-tonne parcel, produced at its Finniss project in Northern Territory, as well as an additional 15,000 tonnes.
Sichuan Yahua will pre-pay 80% of the consideration for the 15,000-tonne shipment, which Core Lithium says will help boost cash flows as it continues to ramp up its operations.
(Reporting by Harshita Swaminathan and Ayushman Ojha; Editing by Savio D'Souza and Subhranshu Sahu)
((Harshita.Swaminathan@thomsonreuters.com; Ayushman.Ojha@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
