The Ioneer Ltd (ASX: INR) share price has forged into the green on Monday amid the company announcing a new supply agreement.
At the time of writing, Ioneer shares are up 0.36% at 56.2 cents apiece, after earlier hitting an intraday high of 59.5 cents a share. That was a 6.25% jump on Friday's closing price.
What did Ioneer announce?
The company advised it has signed a lithium offtake supply agreement with the Prime Planet Energy & Solutions (PPES) joint venture (JV).
PPES is a battery production company comprised of a JV between automotive manufacturing giant Toyota and battery manufacturer Panasonic.
Under the agreement, Ioneer will supply PPES with 4,000 tonnes of lithium carbonate per annum for five years from its Rhyolite Ridge project in Nevada, US.
PPES will use the lithium supply to make batteries for US electric vehicles, Ioneer says.
Ioneer executive chairman James Calaway said the company was "grateful" and that the deal marked "another key milestone" for the company. He said:
PPES is a world-class organisation and we look forward to being their trusted partner.
This and the previously announced Ford and EcoPro agreements solidify Ioneer's focus on the US Electric Vehicle supply chain infrastructure.
We look forward to providing lithium materials to PPES and all our offtake partners for their growth in the EV global market.
The latest agreement marks the completion of pre-production of Ioneer's lithium supply commitments at Rhyolite Ridge, following the signing of two previous offtake agreements.
Over the past 12 months, the Ioneer share price is up more than 37%.
