Ann: Binding Lithium Offtake Agreement Signed with Umicore, page-31

@bombersmadd...

However, how will anyone be able to SECURE Zero Carbon Lithium/green lithium in 2025?

No zero carbon lithium, no carbon tax credits. More importantly, no carbon credits you can pass on to you offtakers.

Have you seen the length of the offtakes?
They are on average 5 years, and with Vulcan, starting 2024/2025.
If you do not SECURE Zero Carbon supply NOW, you run the risk of missing out.

You will be locked out by all the first movers who understood the importance of securing supply of Zero Carbon Lithium/green lithium.

The current premium being payed is in advanced offtakes, 2 and half years before production, and favourable contract conditions.

Thats why we are nearly , and soon to be, SOLD OUT. And then where will you buy zero carbon lithium from in Europe?

Our partners have recognised the importance of locking in this supply, from as soon as possible, - 2024/2025 to 2030.

And what then at 2030??.... our current partners will extend their contracts..Others will have to pay a premium to try and get Vulcan lithium.
If you do not secure supply now, you face the possibility of being taxed.
Then how do compete with the companies who are receiving TAX CREDITS???

Every major manufacturer will produce an EV fleet.

How will they gain an advantage??

Efficiency in manufacturing, supply chain and paying minimal tax.


This recogntion is currently happening.

Thats why Umicores BOA was- ' Pricing will be based on market prices on a take-or-pay basis.'
For those who dont understand this-
'Take or pay provisions are generally included between companies with their suppliers, which require that the purchasing firm take a stipulated supply of goods from the supplier by a certain date, at the risk of paying a fine to the supplier if they don't. This sort of agreement benefits the supplier by reducing the risk of losing money on any capital spent to produce whichever product they are trying to sell.
A condition which favours the seller..a premium to secure supply.

So whether it is a financial premium, or a conditional premium in the sales contract, it will be there.

Zero carbon, low capex, carbon tax credits, low impurities, location... No other producers in the EU can offer this.

For those who need lithium, particularly in this new supply deficit era, the case for providing a premium is self evident.

And as to my comment of soon to be SOLD OUT.

From the Umicore announcement-

'Managing Director Francis Wedin commented: “Umicore, a leading cathode manufacturer and the first in
Europe, will be a valuable offtake partner for Vulcan, as a direct consumer of Vulcan’s lithium hydroxide
products. With our recent announcements of agreements with LG Energy Solution and Renault Group, we
now have a diversified mix of offtakers from the cathode, battery and automotive sectors, with further
agreements expected in the near term. '

Bring on Stellantis...

And bring on our production increase...

Good luck everyone...