Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) CEO Niko Cacos joined Steve Darling from Proactive to Share significant news that the company has secured US$90 million in funding through a strategic agreement with Stellantis, one of the world's largest automakers, known for its major brands such as Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Peugeot, and RAM. Under this agreement, Stellantis will acquire a 19.9% stake in Argentina Lithium, leaving the company with 80.1% ownership.
Under this agreement, Stellantis will acquire a 19.9% stake in Argentina Litio y Energia, leaving the company with 80.1% ownership. The cornerstone of this partnership is an offtake agreement, with Stellantis committing to purchase up to 15,000 tonnes per annum of lithium produced by Argentina Lithium over a seven-year period. This offtake agreement may potentially be extended beyond the initial seven-year period.
It's important to note that the commencement of the supply obligation by Argentina Lithium is contingent upon the successful launch of commercial production at one or more of its projects. This collaboration with Stellantis not only provides Argentina Lithium with substantial funding but also establishes a long-term partnership with a major player in the automotive industry. It underscores the growing demand for lithium as a key component in electric vehicle batteries and positions Argentina Lithium as a significant contributor to the supply chain of lithium, a critical resource for the rapidly expanding electric vehicle market.