Energy Exploration Technologies (EnergyX) announced Monday that it has signed a binding, definitive lithium offtake agreement with commodities trader Trafigura, covering 100,000 metric tons of battery-grade lithium products over a 10-year term. The agreement gives a direct lithium extraction developer a long-term buyer for product from plants that have yet to reach commercial scale. It also lands as processing and offtake deals gather pace across Brazil, the US and Europe. According to market data, the lithium ETF LIT closed at $68.37 on Monday, down 2.0% on the day.
EnergyX: Binding Lithium Offtake With Trafigura
Based on market prices of approximately $20,000 per metric ton, the agreement represents more than $2 billion in revenue for EnergyX over its term, the company said, according to MINING.COM. The deal covers lithium carbonate from Black Giant in Chile and lithium hydroxide from project Lonestar in Hooks, Texas. EnergyX commissioned Lonestar, a demonstration plant capable of producing 250 metric tons per year of lithium carbonate equivalent, in March.
Reuters, which says it was first to report the deal, described it as one of the largest deals ever tied to direct lithium extraction technology. Per Reuters, the contract is take-or-pay, and Trafigura will buy 5,000 tonnes per year of lithium hydroxide and the same amount of lithium carbonate. EnergyX plans to initially produce 15,000 metric tonnes per year of lithium hydroxide in Texas starting in 2029, so Trafigura would take 33% of that output. In Chile, it plans to start producing 7,500 metric tonnes per year of lithium carbonate in 2028, with Trafigura's share reflecting 66% of the output there. EnergyX CEO Teague Egan told Reuters: "We need to build and start producing commercial lithium in order to even think about having a public offering."
Reuters also reported that Switzerland-based Trafigura plans to initially sell the lithium to Chinese customers, with the long-term goal of becoming a large supplier to US markets once the country's battery supply chain is developed. MINING.COM reported that China dominates an estimated 70–75% of global lithium chemical conversion capacity, a major bottleneck in the battery supply chain.
Financing remains the open question. Reuters reported that EnergyX needs additional funds to build the Chile and Texas facilities, and that the deal helps advance its application with the US Export-Import Bank for a $$690m loan. MINING.COM noted that EnergyX already holds a $690 million Letter of Intent from the U.S. EXIM Bank for debt financing of Black Giant. In July, Eni SpA invested $225 million for a minority stake in the project. Black Giant has planned capacity of up to 52,500 metric tons of lithium carbonate per year across its first two phases.
CEO Teague Egan said: "Target commercial Phase 1 production for Black Giant is 2028, where Lonestar is 2029." On the Trafigura commitment, he said a purchase commitment from a counterparty of that scale and credit quality "shows that the market wants EnergyX's product."
Lynas Rare Earths: Brazil Separation Plant Proposal
Lynas Rare Earths (ASX: LYC) has presented plans to build a rare earth oxide separation plant in Brazil's Minas Gerais state, Mines and Energy Minister Alexandre Silveira told MINING.COM. The proposal is part of Lynas' expansion into Brazil through its $672 million acquisition of Meteoric Resources, whose Caldeira project hosts one of the world's largest known ionic-clay rare earth deposits outside China.
Silveira said: "We could have on Brazilian soil one of the largest industrial rare earth plants outside China." State development bank BNDES is evaluating potential financing, according to people familiar with the discussions. It is expected to make a technical visit to Lynas' Australian operations before the end of 2026. The financing structure and final investment decision remain undetermined.
The plan is not a firm commitment. When announcing the Meteoric deal, Lynas described Brazilian downstream processing as a possible future investment and kept the option of sending Caldeira material through its existing international processing network. Meteoric's definitive feasibility study outlined a mineral resource of 1.63 billion tonnes grading 2,317 parts per million total rare earth oxides, including an ore reserve of 151 million tonnes at 3,524 ppm. Initial development capital was estimated at about $498 million, excluding a separate large-scale oxide separation facility. The transaction is expected to be among the first major deals considered under Brazil's critical minerals framework and its National Council for the Industrialization of Critical and Strategic Minerals (CIMCE).
Titan Mining: Army Term Sheet for Graphite Processing
Titan Mining (NYSE-A:TII, TSX:TI) announced that its subsidiary Empire State Mines, LLC (ESM) and the U.S. Army have executed a term sheet setting out the principal commercial terms for a critical minerals processing facility on Army property. ESM has agreed to terms on a framework to lease roughly 97 acres at Anniston Army Depot in Alabama for up to 100 years. The facility would turn raw graphite into higher-value materials.
The framework gives the Army a right of first offer on certain uncommitted graphite products, limited to a maximum of 10% of annual facility production. Deputy Assistant Secretary of the Army Dr. Jeff Waksman said the Army can help expedite the critical minerals industrial base "without putting any taxpayer dollars at risk."
Titan commenced graphite concentrate production at its Kilbourne demonstration facility in New York state in January. On the day of the announcement, its shares closed down 6% on the NYSE American, leaving a market capitalization of $228 million, MINING.COM reported.
