EnergyX has signed a 10-year, take-or-pay lithium supply deal with Trafigura. The contract covers 100,000 metric tons of battery-grade lithium carbonate and lithium hydroxide from EnergyX's planned Project Black Giant in Chile and Project Lonestar in Texas. At current prices, EnergyX values the agreement at more than $2 billion, with Trafigura taking about 10,000 metric tons per year. The deal gives EnergyX a revenue framework as it seeks financing. It has a $690 million letter of intent from the US Export-Import Bank for Project Black Giant and a $225 million investment from Eni. Production is targeted for 2028 in Chile and 2029 in Texas. The company still needs to build and commission the facilities, so actual revenue depends on hitting those timelines and on lithium prices. Lithium demand is expected to keep growing as grid storage and EVs expand, but the market has seen oversupply and price swings. EnergyX's direct lithium extraction technology also needs to prove it can produce battery-grade material at commercial scale.
