EnergyX has signed a binding, 10-year agreement to supply commodities trader Trafigura with 100,000 metric tons of battery-grade lithium products from projects in Chile and Texas. The deal is valued at more than $2 billion at prevailing lithium prices and gives EnergyX a long-term customer commitment as it prepares to expand commercial production.
Key Takeaways
- The 10-year, take-or-pay agreement covers 100,000 metric tons of lithium products
- Its estimated value exceeds $2 billion at lithium prices near $20,000 per metric ton
- Trafigura is set to purchase 5,000 metric tons each of lithium carbonate and lithium hydroxide annually
- EnergyX targets commercial-scale production in Chile in 2028 and Texas in 2029
- EnergyX has announced a $225 million investment from Eni and a $690 million U.S. EXIM Bank financing letter of intent for its Chilean project
EnergyX Secures a Long-Term Lithium Buyer
The EnergyX lithium supply agreement establishes a purchasing arrangement for planned output from Project Black Giant in northern Chile and Project Lonestar in Texas. Under the deal, Trafigura has agreed to take 66% of Black Giant’s first-phase output and 30% of Lonestar’s first-phase output.
The contract uses a take-or-pay structure, providing a commercial commitment for future deliveries. Its headline value is an estimate based on lithium prices near $20,000 per metric ton, rather than a record of revenue already earned. Actual payments and deliveries will depend on the contract’s terms and EnergyX’s ability to supply the materials.
For EnergyX, securing a buyer before full commercial-scale production is an important part of project development. Trafigura, meanwhile, gains access to prospective supply from two operations in the Americas.
Contract Covers Two Battery-Grade Lithium Products
Trafigura will buy lithium carbonate from Black Giant and lithium hydroxide from Lonestar. The planned annual volumes are 5,000 metric tons of each material. Both are used in rechargeable battery supply chains, although their applications vary by battery chemistry and manufacturing requirements.
Reliable access to these inputs is part of broader critical battery material sourcing considerations for electric vehicle manufacturers. The agreement gives Trafigura a route to market future production, rather than immediately adding those volumes to available global supply.
Trafigura initially intends to market the products to customers in China, with longer-term plans to serve U.S. buyers as domestic battery supply chains develop. The eventual mix of destinations will depend on production and customer demand.
Production Plans Span Chile and Texas
EnergyX aims to begin commercial-scale lithium carbonate production at Black Giant in 2028 and lithium hydroxide production at Lonestar in 2029. Both projects are expected to use the company’s direct lithium extraction technology, which separates lithium from mineral-rich brine.
The company commissioned a smaller lithium production plant at Lonestar in 2026, but that milestone is distinct from the larger commercial-scale output planned for 2029. Black Giant also faces construction and commissioning work before its projected production begins.
Developing capacity in Chile and Texas fits into broader efforts to strengthen U.S. supply chain resilience through diversified access to critical minerals. The two-country production plan could expand sourcing options for battery customers if the facilities reach their intended capacity.
The dates remain targets. Construction, financing and operational readiness will determine when contracted deliveries can begin.
EnergyX Advances Financing for Its Lithium Projects
EnergyX’s supply agreement follows a $225 million strategic investment announced by Eni in July 2026 for a minority stake in Project Black Giant. Eni also obtained an option to purchase a portion of the Chilean project’s future lithium production.
EnergyX has separately disclosed a $690 million financing letter of intent from the U.S. Export-Import Bank relating to Black Giant. That expression of potential debt support is not the same as a finalized or disbursed loan.
The Trafigura contract may help EnergyX demonstrate future demand to lenders, but it does not replace the funding and project execution required to build out commercial capacity. Whether the planned facilities meet their production schedules will remain a central consideration for buyers and financiers.
Frequently Asked Questions
How much is the EnergyX-Trafigura agreement worth?
Its estimated value exceeds $2 billion over 10 years, based on lithium prices near $20,000 per metric ton. The figure is not revenue already realized.
How much lithium will Trafigura purchase?
The contract covers 100,000 metric tons in total, split evenly between lithium carbonate and lithium hydroxide over the 10-year term.
Where will EnergyX produce the lithium?
Lithium carbonate is planned for Project Black Giant in Chile, while lithium hydroxide will come from Project Lonestar in Texas.
When will commercial-scale production begin?
EnergyX targets 2028 for Black Giant and 2029 for Lonestar, subject to project development and commissioning.
Has the U.S. EXIM Bank approved a $690 million loan?
EnergyX has disclosed a $690 million financing letter of intent for Black Giant. That does not establish that a loan has been finalized or disbursed.
