Galaxy Resources signs agreements for lithium

 When coupled with the sales agreement with Mitsubishi Corporation, the commercially confidential offtake agreements signed now equate to 100 per cent of Galaxy’s 17,000 tonnes of lithium carbonate production per annum and involve the supply of battery grade product commencing in 2011.

Galaxy Resources Managing Director, Mr Iggy Tan, said that securing offtake customers for all of the total output confirmed the quality of the project and Galaxy’s ability to capitalise on the future demand within the lithium market.

"We are pleased to have secured major Chinese lithium cathode producers as the foundation customers of lithium carbonate produced at our Jiangsu Plant," Mr Tan said.

"The unanimous message received from all of the lithium cathode producers during recent marketing trips has been that Galaxy’s project will deliver the right product, from the right place, at the right time.

"Almost all of the lithium cathode producers Galaxy has engaged with are significantly increasing capacity in the coming 12 to 24 months and by signing up for our product, these foundation customers are acknowledging the strength of the Galaxy project, particularly as it provides security of supply for battery grade lithium carbonate needed to underpin their expansion plans.

"We have essentially locked in the future growth potential of the Chinese and Japanese battery grade lithium carbonate market for the next five years," he said.

Galaxy’s strategic objective is to produce the highest battery grade product in a new era of lithium carbonate demand for electric vehicles.

Galaxy will begin supplying battery-grade lithium carbonate in 2011, which is needed to power hybrid and electric cars.

The Company remains well placed to capitalise on its first mover advantage in the lithium carbonate market, the highest growth sector of all the lithium products.

Galaxy Resources Limited (ASX: GXY) is an emerging mining and chemical company focusing on lithium and tantalum production. Galaxy is at an advanced stage of developing its Mt Cattlin Lithium Project (hard rock spodumene) in Ravensthorpe, Western Australia.

The Project encompasses a mine and minerals plant which will produce 137,000 tpa of 6% Li2O spodumene concentrate. Galaxy intends to add value to the Mt Cattlin Project by establishing its own downstream lithium processing facilities in China.

The Company is finalising plans to establish a lithium carbonate chemical facility in Jiangsu Province, producing 17,000 tpa of lithium carbonate.