Here’s why the Infinity share price is powering 6% higher today

The lithium explorer’s shares are rebounding…

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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.

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