Lilac Solutions and Traxys North America have entered into a binding 10-year offtake agreement for lithium carbonate produced at Lilac’s Great Salt Lake facility in Utah. Under the agreement, Traxys will purchase 50,000 tonnes of battery-grade lithium carbonate over the decade, representing 100% of the planned Phase 1 output. The take-or-pay contract includes pricing mechanisms tied to established market indices.
The Great Salt Lake Phase 1 facility is engineered to deliver 5,000 tonnes per annum of lithium carbonate, which would nearly double current U.S. production levels. The project leverages Lilac’s Gen 5 ion exchange technology, which demonstrated 87% lithium recovery on the lake’s ultra-low-grade brine (69 mg/L lithium) during pilot plant operations completed in 2025.
“Traxys, one of the world’s leading lithium traders, has been an excellent partner as we’ve developed this project, and formalizing this long-term offtake agreement is a key step toward achieving final investment decision,” said Raef Sully, chief executive officer of Lilac Solutions. “With FEL-3 engineering complete and regulatory approvals progressing, securing offtake for 100% of planned output moves us closer to construction of a significant new source of domestic lithium.”
“Traxys is pleased to enter this 10-year offtake agreement with Lilac to advance our shared vision for a robust U.S. lithium supply chain,” said Martim Facada, managing director lithium trading at Traxys. “Lilac’s unique technology and deep sector experience combined with Traxys’ global market reach, expertise in natural resources and supply chain financing will contribute greatly to bring Lilac’s lithium carbonate to market to supply the lithium-ion battery industry.”
Phase 2 is planned to expand capacity to 20,000 tonnes per annum of lithium carbonate equivalent, nearly quadrupling current domestic output. The facility will use ion exchange media manufactured at Lilac’s Fernley, Nevada plant and will return lithium-depleted brine to the lake without lowering water levels. Local tax revenues and royalties are expected to support lake preservation efforts and create jobs in Utah.
Lilac has finalized FEL-3 engineering for the Phase 1 facility and is collaborating with state regulators to secure the permits required for construction and operation. Traxys, a global physical trader in metals and natural resources, will provide market access and financing support for the project’s output.
Source: Business Wire
