Nemaska Lithium Inc. (“Nemaska Lithium” or the “Corporation”)
(TSX:NMX) (OTC:NMKEF) and Northvolt AB ("Northvolt") are pleased to
announce the signature of an agreement providing for the supply of
battery grade lithium hydroxide by the Corporation to Northvolt.
On April 27, 2018 Nemaska Lithium announced an
agreement in principle with Northvolt. This agreement is now
superseded by a definitive 5-year supply agreement. Under this
agreement, Nemaska Lithium agrees to supply, through its
wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation
Inc., and Northvolt agrees to purchase, on a take-or-pay basis, up
to 5,000 but not less than 3,500 metric tonnes per year of lithium
hydroxide produced at the Corporation's commercial plant in
Shawinigan, for a 5-year supply period commencing upon the start of
commercial production at both the Shawinigan Plant and Northvolt's
projected Skellefteå factory in Sweden (the "N Factory"). Under
this agreement, Northvolt has agreed to deliver to the Corporation
a EUR 10M promissory note (please see April 27, 2018 press
release).
"We are very pleased to have moved this
agreement in principle to a firm contract. Northvolt is not the
only one to share our vision of a green energy future powered by
lithium ion batteries. Our ongoing discussions with buyers reflect
a very tight market for high purity lithium hydroxide and lithium
carbonate. We continue to field inbound calls looking for supply of
battery grade lithium hydroxide and carbonate. However, with
approximately 90% of its future annual production capacity already
committed, Nemaska Lithium is currently more focused on properly
executing the construction and upcoming commissioning of its
project to satisfy its existing clients,” said Guy Bourassa,
President & Chief Executive Officer of Nemaska Lithium.
Bourassa continued, “As we continue full speed
ahead with the construction, we believe the value in Nemaska
Lithium is supported by its strong fundamentals, including: a world
class lithium deposit; a proprietary state of the art
electrochemical lithium extraction process and strong off take
agreements with reliable end users. We have attracted many talented
people with past project construction and operations experience and
we continue to build on that team. From an intrinsic value
perspective, Nemaska Lithium has never been in a better shape and
going forward, we strongly believe these strong fundamentals will
eventually be properly reflected.”
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
www.twitter.com/Nemaska_Lithium.
About Northvolt
Northvolt was founded in 2016 with the mission
to build the world's greenest battery, with a minimal carbon
footprint and the highest ambitions for recycling, to enable the
European transition to renewable energy. Northvolt's team of
experts is building the next generation battery factory focused on
process innovation, scale and vertical integration. Once completed,
it will be Europe's largest battery factory and will produce 32 GWh
worth of battery capacity annually. For more information, please
visit www.northvolt.com.
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
Northvolt of 3,500 to 5,000 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 start of commercial production at both the
Shawinigan Plant and Northvolt's projected Skellefteå factory in
Sweden.
Forward-looking statements contained in this
press release include, without limitation, those related to (i) the
shared vision by the Corporation and Northvolt of a green energy
future powered by lithium ion batteries, (ii) the lithium market
considerations, (iii) the commitment of the Corporation’s future
production capacity and its focus on construction and commissioning
to satisfy existing clients, (iv) the construction continuing full
speed ahead and the eventual commissioning, (v) the Corporation’s
fundamentals being eventually reflected properly, and (vi)
generally, the above "About Nemaska Lithium" paragraph which
essentially describes the Corporation's outlook (as well as the
corresponding "About Northvolt" paragraph). 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 and Northvolt's projected Skellefteå factory in
Sweden will be brought into commercial production, as future events
could differ materially what is currently anticipated by the
Corporation and Northvolt.
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 endeavors to complete its project financing and,
more generally, its 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 CantoreInvestor
Relations514 831-3809victor.cantore@nemaskalithium.com |
Wanda Cutler Investor
Relations 416 303-6460
wanda.cutler@nemaskalithium.com |
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Fanny-Ève Tapp Media Relations B. 514 935 2777 # 204 C. 514 442
0445 fanny-eve.tapp@nemaskalithium.com |
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www.nemaskalithium.com