FMC Corporation and Nemaska Lithium Sign Long-Term Lithium Carbonate Supply Agreement
October 31, 2016 (Source) — Nemaska Lithium Inc., via its wholly owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., (collectively “Nemaska Lithium” or the “Corporation”) (TSX:NMX)(OTC:NMKEF) is pleased to announce that it has entered into an agreement with FMC Corporation (“FMC”) pursuant to which Nemaska Lithium will provide FMC with 8,000t per year of lithium carbonate beginning in mid-2018 (the “Agreement”). This is the second multi-year supply agreement for Nemaska Lithium, the first being with Johnson Matthey Battery Materials.
“With the signing of this second multi-year agreement, we have total purchase commitments for close to 50% of the Corporation’s total planned production starting in mid-2018,” commented Guy Bourassa, President and CEO of Nemaska Lithium. “FMC is looking to diversify its supply sources of high quality lithium products and our proprietary process enables Nemaska Lithium to produce low cost lithium carbonate that meets FMC’s quality specifications. Our customers, including FMC, will begin receiving lithium samples from our Phase 1 Plant in 2017.”
Nemaska Lithium is building a commercial Hydromet lithium plant (the “Hydromet Plant”) with a name plate production capacity of 28,000t of lithium carbonate equivalent (LCE). When constructed, the Hydromet Plant will produce battery grade lithium hydroxide and lithium carbonate.
Bourassa continued,” Our production line is flexible and cost effective, allowing us to be opportunistic and address a broader lithium salts market by producing both battery grade lithium hydroxide and lithium carbonate. I believe in the long term the lithium battery market will continue to move toward lithium hydroxide chemistries and we are very well positioned in this space.”
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. FMC acquired Cheminova in April 2015. Revenue totaled approximately $3.3 billion in 2015. FMC employs approximately 6,000 people throughout the world and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium. For more information, visit www.FMC.com.
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About Nemaska Lithium
Nemaska Lithium intends to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market. The Corporation is developing in Québec one of the most important spodumene lithium hard rock deposits in the world, both in terms of volume and grade. The spodumene concentrate produced at Nemaska Lithium’s Whabouchi mine will be shipped to the Corporation’s lithium compounds processing plant to be built in Shawinigan, Québec. This plant will transform the spodumene concentrate into high purity lithium hydroxide and carbonate using the proprietary methods developed by the Corporation, and for which patent applications have been filed.
All statements, other than statements of historical fact, contained in this press release including, but not limited to, any information as to the planned production and its expected commencement in mid-2018, constitute ”forward-looking information” or ”forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.