EnergyX Signs $2 Billion Lithium Offtake Deal with Trafigura in 10-Year Agreement

EnergyX has signed a binding, 10-year lithium supply agreement worth approximately $2 billion with global commodities trader Trafigura, marking a major commercial milestone for the US-based lithium technology company. The deal covers 100,000 metric tonnes of battery-grade lithium products sourced from planned projects in Chile and Texas, strengthening prospects for new supplies to the global battery and energy storage industries.

Deal Covers Lithium Carbonate and Lithium Hydroxide

Under the agreement, Trafigura will purchase two key lithium products: lithium carbonate from EnergyX’s Project Black Giant in Antofagasta, Chile, and lithium hydroxide from its Project Lonestar in Texas, United States.

The contract covers a total of 100,000 metric tonnes over 10 years, comprising approximately 5,000 tonnes annually of each product. The agreement is structured as a take-or-pay contract, under which the buyer commits to paying for contracted quantities subject to the terms of the agreement.

At current lithium prices of around $20,000 per tonne, EnergyX estimates the deal could generate more than $2 billion in revenue over the contract period. Actual revenue will depend on market prices and the agreement’s terms.

Production Expected to Begin in 2028

EnergyX plans to begin commercial-scale lithium carbonate production at its Chilean Black Giant project in 2028, followed by lithium hydroxide production at its Texas Lonestar project in 2029.

Under the agreement, Trafigura has committed to purchasing around 66% of the first phase’s offtake from the Chilean project and 30% of the first phase’s offtake from the Texas project, according to the companies.

EnergyX uses direct lithium extraction (DLE) technology, which aims to recover lithium from brine through specialised separation and filtration processes. The company is working to advance its projects from technology demonstration to commercial production.

Financing Support and Supply Chain Implications

The agreement could help EnergyX secure the financing needed to construct its commercial facilities. The company has disclosed a $690 million financing letter of intent from the US Export-Import Bank, alongside efforts to obtain additional project financing.

Long-term offtake agreements can provide lenders and investors with greater visibility into future sales, although they do not guarantee that financing will be approved or that projects will be completed on schedule.

For Trafigura, the deal expands its position in the battery metals market and provides access to planned lithium production in both North and South America. The company has indicated that a significant share of the supply is expected to support the US battery supply chain. It plans to initially sell lithium to Chinese customers while pursuing greater participation in the US market over the longer term.

Lithium Demand and the Energy Transition

Lithium is a key raw material used in rechargeable batteries for electric vehicles, consumer electronics and stationary energy storage systems. While electric vehicle sales have experienced uneven growth across markets, demand from large-scale battery storage is emerging as another important source of consumption.

The EnergyX–Trafigura agreement highlights how long-term purchasing commitments can help developing lithium projects attract capital and connect future production with established commodity trading networks.

However, EnergyX still needs to complete the necessary financing, construction and operational steps before its planned projects can deliver commercial volumes. The agreement therefore represents an important step towards production rather than evidence that the full contracted supply is already available.

Conclusion

EnergyX’s 10-year, approximately $2 billion lithium offtake agreement with Trafigura marks a significant development in the race to build diversified battery-material supply chains. With production targeted to begin in Chile in 2028 and Texas in 2029, the partnership could help advance EnergyX’s commercial ambitions while supporting future lithium supplies for battery manufacturing and energy storage.