European Lithium signs binding lithium offtake agreement with BMW
European Lithium has announced that it has signed a binding long term lithium offtake agreement with auto manufacturer BMW to secure the company’s first offtake of battery grade lithium hydroxide (LiOH) from its Wolfsberg lithium project in Austria.
The company said that it has granted BMW the first right to purchase 100% of the LiOH produced from the identified resources at Wolfsberg. Supply of lithium hydroxide product expected to begin in 2026 and continue for 6 years until 2031, at which time the offtake agreement can be extended for 3 years.
Pricing will be based on fast market spot prices for lithium hydroxide with a discount applied, it added.
Pursuant to the agreement, European Lithium will supply approximately 50,000 metric tonnes of battery grade lithium hydroxide, commencing in the first year with 5,000 metric tonnes and 9,000 metric tonnes each year thereafter.
The company said that BMW to make an advance payment of US$15 million to be repaid through equal set offs against LiOH delivered to BMW. Conditions precedent includes successful start of commercial production and full product qualification and certification.
European Lithium noted that securing its first offtake is a key milestone which will allow the company to focus on the final steps of development and construction of the Wolfsberg project while it looks to the future and builds a portfolio of prospective battery metals projects located in Europe.
European Lithium is a mining, exploration and development company focusing on its wholly owned Wolfsberg lithium project in Austria. The company aims to be the first local lithium supplier into an integrated European battery supply chain.
Located 270km SW of Vienna, in Carinthia, Austria, Wolfsberg is a hard rock lithium deposit with exploration upside. The company said that the deposit is well located to service European consumers, the EV industry and growing number of battery manufacturers in the region, adding that a recently completed positive PFS supports planned lithium hydroxide sales into an integrated European battery supply chain.
