Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”)
(TSX:NMX) (OTC:NMKEF) and LG Chem, Ltd.
(“LG”)
are pleased to announce the signature
of an agreement providing for the supply of battery grade lithium
hydroxide by the Corporation to LG.
“We are pleased with this first step towards
establishing a long-term commercial relationship between LG and
Nemaska Lithium. The signing of this agreement is a clear vote of
confidence by LG in our business plan and our capacity to be a
long-term supplier of lithium hydroxide”, said Guy Bourassa,
President & Chief Executive Officer of Nemaska Lithium.
Under this agreement, Nemaska Lithium agrees to
supply LG, on a take-or-pay basis and through its wholly-owned
subsidiary Nemaska Lithium Shawinigan Transformation Inc., with
7,000 tonnes per year of lithium hydroxide produced at the
Corporation’s commercial plant in Shawinigan, for an initial 5-year
period scheduled to start in October 2020. Nemaska Lithium is
entitled, if ever necessary, to reschedule the commencement of the
supply period, within certain parameters set out in the agreement
and based on the anticipated commissioning, ramping up and
production start date for the Shawinigan plant.
With this additional off-take agreement and
taking into account the right of first offer granted to SoftBank
Group to purchase up to 20% of production, Nemaska Lithium has now
committed or has agreement in principle in place for over 90% of
its anticipated 33,000 tonnes/y LCE capacity.
About Nemaska Lithium
Nemaska Lithium is a developing chemical company
whose activities will be vertically integrated, from spodumene
mining to the commercialization of high-purity lithium hydroxide
and lithium carbonate. These lithium salts are mainly destined for
the fast-growing lithium-ion battery market, which is driven by the
increasing demand for electric vehicles and energy storage
worldwide. With its products and processes, Nemaska Lithium intends
to facilitate access to green energy, for the benefit of
humanity.
The Corporation will be operating the Whabouchi
mine in Québec, Canada, one of the richest lithium spodumene
deposits in the world, both in volume and grade. The spodumene
concentrate produced at the Whabouchi mine will be processed at the
Shawinigan plant using a unique membrane electrolysis process for
which the Corporation holds several patents.
Nemaska Lithium is a member of the S&P/TSX
SmallCap Index, S&P/TSX Global Mining Index, S&P/TSX Global
Base Metals Index, S&P/TSX Equal Weight Global Base Metals
Index, and the MSCI Canada Small Cap Index. For more information,
visit www.nemaskalithium.com or twitter.com/Nemaska Lithium.
About LG Chem
LG Chem, Ltd. is Korea’s largest diversified
chemical company which operates three main business units:
Petrochemicals, IT & Electronic Materials and Energy Solution.
The company was founded in 1947 and now employs over 29,000 staff
globally. The chemical business manufactures a wide range of
products, from petrochemical goods to high-value added plastics. It
also extends its chemical expertise into high-tech areas such as
electronic materials and lithium-ion batteries. With over 20 years’
experience of development and production of these batteries, LG
Chem has established itself as one of the world’s leading
lithium-ion manufacturers. The company is a primary supplier of
lithium batteries throughout the world for the mobile phone and
hybrid/electric vehicle industries & Energy Storage System
(ESS). For further information about LG Chem, visit
http://www.lgchem.com/global/main.
Cautionary Statement on Forward-Looking
Information
All statements, other than statements of
historical fact, contained in this press release including, but not
limited to, those relating to the supply by the Corporation to LG
of 7,000 metric tonnes per year of battery grade lithium hydroxide,
constitute “forward-looking information” and “forward-looking
statements” within the meaning of certain securities laws and are
based on expectations and projections as of the date of this press
release. Certain important assumptions by the Corporation in making
forward-looking statements include but are not limited to the
commissioning, ramping up and production of the Shawinigan
plant.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
start of supply, in October 2020, of 7,000 tonnes per year of
lithium hydroxide by the Corporation to LG, (ii) the possible
rescheduling of the commencement of the supply period, (iii) the
establishment of a long-term commercial relationship between LG and
the Corporation, (iv) the 33,000 tonnes/y capacity at the
Shawinigan plant, and (v) generally, the above “About Nemaska
Lithium” paragraph which essentially describes the Corporation’s
outlook. Forward-looking statements 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 the
Shawinigan Plant will be brought to commercial production, as
results from the Corporation’s project financing endeavors, as well
as future events could differ materially what is currently
anticipated by the Corporation.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, and risks exist that estimates, forecasts, projections
and other forward-looking statements will not be achieved or that
assumptions do not reflect future experience. Forward-looking
statements are provided for the purpose of providing information
about management's expectations and plans relating to the future.
Readers are cautioned not to place undue reliance on these
forward-looking statements as a number of important risk factors
and future events could cause the actual outcomes to differ
materially from the beliefs, plans, objectives, expectations,
anticipations, estimates, assumptions and intentions expressed in
such forward-looking statements. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements and those made in our other filings with the
securities regulators of Canada including, but not limited to, the
cautionary statements made in the “Risk Factors” section of the
Corporation’s Annual Information Form dated October 5, 2017 and the
“Risk Exposure and Management” section of the Corporation’s
quarterly Management Discussion & Analysis. The Corporation
cautions that the foregoing list of factors that may affect future
results is not exhaustive, and new, unforeseeable risks may arise
from time to time. 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.
Further information regarding Nemaska Lithium is
available in the SEDAR database (www.sedar.com) and on the
Corporation's website at: www.nemaskalithium.com.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Victor Cantore |
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Wanda Cutler |
Investor Relations |
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Investor Relations |
514 831-3809 |
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416 303-6460 |
victor.cantore@nemaskalithium.com |
|
wanda.cutler@nemaskalithium.com |
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Fanny-Ève Tapp |
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|
Media Relations |
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B. 514 935 2777 #
204 |
|
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C. 514 442 0445 |
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fanny-eve.tapp@nemaskalithium.com |
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www.nemaskalithium.com