Junior lithium producer Galaxy Resources has signed an off-take agreement with Japan’s Mitsubishi Corporation for what it calls “a significant proportion” of its battery grade lithium carbonate production.
According to Galaxy Resources managing director Iggy Tan, the agreement marks an important milestone for the company’s lithium project.
“By 2010, Galaxy’s Mt Cattlin mine will be the world’s second largest hard rock producer of spodumene,” he said.
“Through the development of its value adding lithium carbonate plant in China, the company will be the largest and lowest cost battery grade lithium carbonate producer in Asia.”
Mitsubishi, Japan’s largest general trading company, will use Galaxy’s lithium to produce large capacity and high performance lithium ion batteries for its automobile sector.
Galaxy said that it is also currently in discussions for similar off take agreements with other major groups in China and other Asia Pacific regions.