The Infinity Lithium Corporation Ltd (ASX: INF) share price is on the move today. This follows the lithium explorer signing of a Memorandum of Understanding (MOU) for the offtake of lithium hydroxide (LiOH).
At the time of writing, Infinity shares are up 6.10% to 8.7 cents.
Infinity progresses lithium hydroxide development
In a statement to the ASX, Infinity advised it has entered into a non-binding MOU with LG Energy Solution.
Based in South Korea, LG Energy Solution is a global leader that is focused on producing advanced lithium-ion batteries. The eco-friendly company services the electric vehicles, mobility & IT applications, and energy storage systems market.
The collaboration will seek to form an agreement for the long-term supply of battery grade LiOH from the San José Lithium Project.
The terms of the MOU are set out below:
- Potential supply of LiOH for an initial 5-year period with the potential to continue for a further 5 years;
- First right to 10,000 tonnes per annum of LiOH product with additional volumes under the MOU subject to negotiations and agreement;
- The purchase price for LiOH set to be set at market prices, pending approval by both parties.
Infinity noted that it aims to have the MOU formed into a binding offtake agreement within the next 12 months.
Infinity CEO and managing director, Ryan Parkin said:
We are delighted to announce the commencement of a long-term commercial relationship with tier one partner LG Energy Solution, welcoming the potential to support a global leading lithium-ion battery producer to secure essential facets of the supply chain.
About the Infinity share price
From the beginning of 2021 to mid-February, Infinity shares rocketed higher to reach a multi-year high of 28 cents. However, since then, its shares plummeted 67% after being suspended from trading on the ASX in April.
At today's price, Infinity commands a market capitalisation of around $35 million, with over 402 million shares outstanding.
