EnergyX Inks 10-Year, US$2 Billion Lithium Deal With Trafigura

Lithium extraction startup EnergyX has secured a 10-year, US$2 billion offtake agreement with Swiss commodities trader Trafigura, unlocking financing for both its domestic and international projects.

Under the take-or-pay contract, Trafigura will purchase 100,000 metric tons of battery-grade lithium over a decade, making it one of the largest supply deals ever tied to direct lithium extraction (DLE) technology.

EnergyX will supply the material from two flagship assets. Trafigura will lift 66 percent of the Phase 1 lithium carbonate output from the Black Giant project in Chile, and 30 percent of the Phase 1 lithium hydroxide from the Lonestar project in Texas.

Based on indicative lithium prices near US$20,000 per metric ton, the agreement is valued at roughly US$2 billion.

The long-term revenue visibility also satisfies a requirement to finalize a pending US$690 million debt financing package from the US Export-Import Bank.

“Offtake agreements are among the most important steps in taking a lithium project from development to production,” EnergyX Founder and CEO Teague Egan said in a statement. “A long-term purchase commitment from a counterparty of Trafigura’s scale and credit quality shows that the market wants EnergyX’s product”

The company commissioned its Lonestar demonstration plant in April 2026, currently the largest DLE facility in the US, and targets commercial-scale production at Black Giant in 2028, followed by Lonestar in 2029.

While Trafigura plans to route a significant portion of the contracted volumes to support the US automotive and energy storage sectors, the trader reportedly intends to sell the products initially to Chinese customers.

EnergyX stated it remains in active discussions with other prospective buyers to secure 80 percent of its total Phase 1 offtake ahead of commercial operations.

The firm is also engaged in recent rapid capitalization. In July, Italian energy major Eni injected US$225 million into Project Black Giant for a minority equity stake and the right to lift 25 percent of the site's future output.

EnergyX estimates the Chilean facility will generate roughly US$1.3 billion in annual gross revenue once it hits its full 52,500-ton-per-annum capacity.

Simultaneously, the US Army designated the company in June to construct and operate a processing facility at the Red River Army Depot in Texas.

The site will operate under an Enhanced Use Lease and will refine domestic feedstock into battery- and nuclear-grade lithium isotopes, establishing the first commercial mineral processing operation on a US military installation.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.