Energy Exploration Technologies (EnergyX) announced Monday it has signed a binding, definitive lithium offtake agreement with global commodities trading giant Trafigura, for the purchase of 100,000 metric tons of battery-grade lithium products over a 10-year term.
Based on current market prices of approximately $20,000 per metric ton, the agreement represents more than $2 billion in revenue for EnergyX over its term, the company said.
The deal covers lithium products from both of EnergyX’s first two flagship projects with lithium carbonate supplied from Black Giant in Chile and lithium hydroxide from project Lonestar in Hooks, Texas.
In March, EnergyX commissioned Lonestar, a demonstration plant capable of producing 250 metric tons per year of lithium carbonate equivalent (LCE), located in the Smackover formation — a lithium-rich brine resource that stretches from Florida to Texas— and the plant is the first DLE facility in the state to process locally sourced brine.
The facility is designed to demonstrate improvements in extraction efficiency, recovery rates and cost competitiveness — key factors that have historically limited the viability of lithium refining outside China.
Currently, China dominates an estimated 70–75% of global lithium chemical conversion capacity, creating a major bottleneck in the global battery supply chain. This concentration has left the US reliant on foreign processing.
In July, EnergyX secured a $225 million investment from Italian energy company Eni SpA for a minority stake in the Black Giant lithium project in Chile’s Antofagasta region. Black Giant has planned capacity to produce up to 52,500 metric tons of lithium carbonate per year across the first two phases. The company also received a $690 million Letter of Intent from the U.S. EXIM Bank to provide debt financing for the project.
A significant share of the lithium offtake will be directed to the US battery supply chain, CEO Teague Egan told MINING.COM in a call.
“Lonestar has been operating longer than Black Giant, however there’s been more engineering done towards a commercial plant at Black Giant, and has been funded by the EMI investments.”
“Target commercial Phase 1 production for Black Giant is 2028, where Lonestar is 2029,” Egan said.
“Offtake agreements are among the most important steps in taking a lithium project from development to production,” Egan said in Monday’s release.
“A long-term purchase commitment from a counterparty of Trafigura’s scale and credit quality shows that the market wants EnergyX’s product. It also gives lenders and investors the revenue visibility they need before committing capital to commercial construction.”
Production will be powered by its proprietary GET-Lit direct lithium DLE refining technology platform, which is covered by more than 150 patents.
“We are pleased to support EnergyX as it develops its lithium projects in Chile and the US. Long-term offtake is an important step in moving projects into production, and this agreement reflects our ability to help bring strategic critical minerals projects online and build secure, diversified supply chains,” Daniel von Arx, Head of Battery Metals at Trafigura, said in Monday’s release.
“Drawing on our logistics network and market expertise, we look forward to supplying these battery-grade lithium products to customers, supporting supply chains for the US automotive and energy storage industries.”