Infinity Lithium Corporation Ltd (ASX:INF) has extended a memorandum of understanding (MoU) with offtake partner LG Energy Solution (LGES) as part of an effort to create a formal agreement between the two parties.
Infinity – through its wholly-owned Spanish subsidiary Extremadura New Energies – is developing the San José Lithium Project in Extremadura, with plans for a local vertically integrated lithium-ion supply chain in the mix.
The San José project boasts one of the largest hard rock lithium resources in the European Union, with a JORC resource of 111.3 million tonnes at 0.28% lithium and 0.61% lithium oxide (cut off of 1,000 parts per million lithium).
LGES has signed an MoU with Infinity for the supply of battery-grade lithium hydroxide from its Spanish mine, which has been redesigned to rely only on underground methods of mineral extraction following community input.
The company believes this underground mining method will reduce visual impact, as well as reducing or eliminating effects on land use and the water table, and noise, dust and vibration pollution.
Formal agreement conditions
Infinity Lithium and LGES are seeking a formal offtake agreement, subject to Infinity successfully entering commercial production and producing a product that meets specification requirements.
INF recently re-visited its plans for a lithium battery chemical production facility, bringing its plans in line with government criteria for an environmentally and socially viable project.
The MoU extension will come into effect on December 22, 2022.