Nemaska Lithium to Receive $12M from Johnson for Quebec Plant

Nemaska Lithium Inc. (TSXV:NMX,OTCQX:NMKEF) announced has signed a memorandum of understanding with Johnson Matthey Battery Materials Ltd.
As quoted in the press release:

The MOU contemplates an up-front payment of CDN$12M by JMBM in exchange for services and products of the same value from the Nemaska Lithium Phase 1 Plant and the subsequent commercial plant to be located in Shawinigan, Quebec. The MOU also includes provisions for the signing of a long term supply agreement for lithium salts (lithium hydroxide and lithium carbonate) for future expected demand for JMBM’s battery material products. The lithium salts will be produced from the commercial hydromet plant which Nemaska Lithium also intends to build in Shawinigan. The collaboration is subject to final due diligence by JMBM and completion of the required final agreements.

Nemaska Lithium President and CEO, Guy Bourassa, stated:

We are very pleased to have entered into this strategic agreement with JMBM, a leading supplier of lithium iron phosphate cathode materials for automotive and non-automotive applications. We are confident in our ability to deliver very pure lithium salts from the Phase 1 Plant and in our ability to subsequently become a long term supplier to JMBM. Analysts and industry experts are predicting a coming shortage of lithium compounds as the lithium battery market continues to grow and companies execute on their growth plans (multiple gigafactories are under construction).
The JMBM agreement is a non-dilutive approach project financing of the Phase 1 Plant and we will be ready to start building as soon as the financing is closed which we expect by February 2016. The main suppliers and long lead items have been identified and we expect to be producing from the Phase 1 Plant within 12 months of the closing of the financing.

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