Lithium Royalty Corp. Congratulates Power Metals on Offtake Agreement with Albemarle; Power Metals Reaffirms 2026 Production Target
LRC's 'Hidden Value' Cesium Bet De-risked as Albemarle Signs Offtake Deal

On December 12, 2025, Lithium Royalty Corp. (LRC) announced it congratulates its partner, Power Metals Corp., on securing a significant offtake and prepayment agreement with Albemarle Corporation for cesium oxide concentrate from the Case Lake project in Canada. Key terms include a prepayment facility of up to C$5 million available to Power Metals. Power Metals has reaffirmed its production target for 2026. LRC holds a 2.0% Gross Overriding Royalty (GOR) on the Case Lake project. The release highlights the current high price of cesium carbonate at nearly US$219,000 per tonne.
This news is a material positive development that significantly de-risks a key non-lithium asset in LRC's portfolio and validates management's strategy of identifying "hidden value".
-
Progression and De-risking: On June 5, 2025, LRC first highlighted the "world-scale cesium discovery" at Case Lake, framing it as unlocking substantial optionality beyond its core lithium focus. At that time, it was an early-stage resource. Today's announcement of an offtake agreement with Albemarle, a global leader in specialty chemicals, provides immense project validation and a clear path to market. The C$5 million prepayment facility provides Power Metals with crucial non-dilutive capital to advance the project towards its 2026 production target.
-
Financial Impact: While no revenue has been generated yet, this agreement firms up a potential high-margin revenue stream for LRC starting in 2026. The price of cesium carbonate has surged from US$118,000/tonne in the June announcement to US$219,000/tonne, nearly doubling the potential value of this royalty. Given Case Lake's stated low capital requirements (~C$8 million), the project appears economically robust, increasing the likelihood of LRC receiving royalty payments.
-
Strategic Validation: This development demonstrates management's ability to identify and secure royalties with valuable by-products that were not factored into the initial underwriting. The CEO's previous statements about cesium representing "hidden value" are now being substantiated with concrete commercial agreements. This successful de-risking diversifies LRC's future revenue away from pure lithium and adds a compelling, high-value critical mineral to its cash flow profile. The news is perfectly in line with, and a successful progression of, previously stated timelines and objectives.
Lithium Royalty Corp. is a royalty company focused on battery materials, primarily lithium. Its strategy is to gain exposure to the electrification and decarbonization transition by acquiring royalties on high-quality, long-life assets in top-tier jurisdictions. The portfolio consists of 37 royalties as of November 2025.
While the company has a diversified portfolio of development assets, its key flagship projects are those currently in or nearing production, which will drive near-term revenue: - Tres Quebradas (Argentina): Operated by Zijin Mining. A large-scale brine project that commenced production in Q3 2025. LRC holds a 0.9% GOR. - Grota do Cirilo (Brazil): Operated by Sigma Lithium. A large, low-cost hard rock operation. LRC holds a 0.9% net NSR. - Mariana (Argentina): Operated by Ganfeng Lithium. A brine project inaugurated in Q1 2025 with first revenue for LRC expected in the near term. LRC holds a 0.45% NSR.
The company is also diversifying into other critical minerals, with royalties on assets containing cesium (Case Lake), high-purity silica (Horse Creek), and tungsten (Fox Tungsten).