FMC Corporation and Nemaska Lithium Sign Long-Term Lithium Carbonate Supply Agreement

QUEBEC CITY, QUEBEC–(Marketwired – Oct. 31, 2016) – Nemaska Lithium Inc. (TSX:NMX,OTCQX:NMKEF), via its wholly owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., (collectively “Nemaska Lithium” or the “Corporation”) is pleased to announce that it has entered into an agreement with FMC Corporation (“FMC”) pursuant to which Nemaska Lithium will provide FMC with 8,000t per year of lithium carbonate beginning in mid-2018 (the “Agreement”). This is the second multi-year supply agreement for Nemaska Lithium, the first being with Johnson Matthey Battery Materials.
“With the signing of this second multi-year agreement, we have total purchase commitments for close to 50% of the Corporation’s total planned production starting in mid-2018,” commented Guy Bourassa, President and CEO of Nemaska Lithium. “FMC is looking to diversify its supply sources of high quality lithium products and our proprietary process enables Nemaska Lithium to produce low cost lithium carbonate that meets FMC’s quality specifications. Our customers, including FMC, will begin receiving lithium samples from our Phase 1 Plant in 2017.”
Nemaska Lithium is building a commercial Hydromet lithium plant (the “Hydromet Plant”) with a name plate production capacity of 28,000t of lithium carbonate equivalent (LCE). When constructed, the Hydromet Plant will produce battery grade lithium hydroxide and lithium carbonate.
Bourassa continued,” Our production line is flexible and cost effective, allowing us to be opportunistic and address a broader lithium salts market by producing both battery grade lithium hydroxide and lithium carbonate. I believe in the long term the lithium battery market will continue to move toward lithium hydroxide chemistries and we are very well positioned in this space.”
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