Lilac Solutions and Traxys North America have signed a binding 10-year offtake agreement covering lithium carbonate production from Lilac’s Great Salt Lake facility in Utah. Under the agreement, Traxys will purchase 50,000 tonnes of lithium carbonate over the contract period, representing 100% of planned Phase 1 production capacity from the project. The Phase 1 facility is designed to produce 5,000 tonnes per year of battery-grade lithium carbonate.
Offtake agreement supports commercial development pathway
The long-term sales agreement provides a defined commercial structure for the planned lithium production facility as Lilac advances toward construction activities. The agreement includes a take-or-pay structure linked to market indices, establishing a framework for future revenue from Phase 1 production. For the Great Salt Lake project, the offtake arrangement provides commercial certainty for the planned output from the direct lithium extraction (DLE) facility.
DLE technology tested on low-grade lithium brine
Lilac’s project development strategy relies on its Gen 5 ion exchange technology to extract lithium from Great Salt Lake brines. During pilot plant operations completed in 2025, Lilac reported that the technology achieved 87% lithium recovery from ultra-low-grade brine containing 69 milligrams per litre of lithium.
The recovery performance is a key component of the project’s technical evaluation, as the Great Salt Lake resource is based on lower-grade brine compared with conventional lithium deposits. The commercial performance of the facility will depend on technology operation, reagent management, water handling, permitting and the ability to scale pilot results into commercial production.
Traxys provides market and logistics connection
The agreement brings Traxys North America into the project through its role as an offtake partner, providing access to trading, logistics and financing-related market functions. The partnership establishes a route for planned Phase 1 lithium carbonate production to reach customers through defined commercial channels. The Great Salt Lake facility remains subject to ongoing technology development and permitting requirements as Lilac advances the project toward commercial-scale production.
