EnergyX has signed a binding 10-year lithium supply agreement with Trafigura covering 100,000 tonnes of battery-grade products, establishing a long-term sales arrangement for planned developments in Chile and the United States. The agreement covers expected production from EnergyX’s Black Giant project in Chile and Lonestar project in Texas. The company estimates the potential sales value at approximately €1.78 billion, based on an assumed lithium price of around €17,800 per tonne.
The estimated value does not represent committed financing or guaranteed revenue. Actual receipts will depend on production volumes, product qualification, contractual pricing formulas and market conditions.
Offtake covers planned production from both projects
EnergyX estimates that the Trafigura agreement could cover approximately 66% of planned first-phase output at Black Giant and around 30% at Lonestar. Commercial production is targeted for 2028 in Chile and 2029 in Texas. Neither project is currently producing lithium. Although the binding offtake agreement strengthens the commercial basis for development, construction financing and operational execution remain outstanding requirements.
Long-term sales contracts can support project bankability by providing greater visibility over future production sales. The agreement alone does not establish that either project has secured the capital required for construction.
US financing interest remains non-binding
EnergyX has previously received a non-binding letter of interest from the US Export-Import Bank equivalent to approximately €615 million. The expression of interest is not an approved or drawable loan and does not constitute committed project financing. The company must still secure definitive financing arrangements, make final construction decisions and execute the developments before the offtake contract can translate into physical lithium deliveries.
Trafigura agreement adds a non-Chinese supply route
The agreement connects EnergyX’s planned production with Trafigura, one of the world’s largest commodity trading groups with substantial European commercial operations. It strengthens another potential non-Chinese lithium supply route within international commodity markets.
The contract does not specifically allocate lithium to European Union battery manufacturers. Western institutional financing and sales through a European-linked trader do not automatically guarantee that material will enter the EU battery supply chain. EnergyX’s next development priority is to convert the long-term commercial agreement into bankable construction financing and operating production at Black Giant and Lonestar.
