E3 Lithium signs offtake, supply MOU with Axens

Executive Summary

• E3 Lithium Ltd. and Axens have signed a non-binding Memorandum of Understanding (MOU) for a dual-purpose strategic collaboration involving the sale of lithium carbonate and the supply of direct lithium extraction (DLE) sorbent.
• Under the MOU, E3 Lithium intends to supply battery-grade lithium carbonate from its Clearwater project in Alberta, Canada, to Axens for use in Europe, while Axens will supply its proprietary lithium selective sorbent to E3 Lithium for use in its DLE processes.
• The agreement is contingent upon mutual qualification milestones, including E3 Lithium producing battery-grade lithium for Axens' review and validating Axens' sorbent for E3 Lithium's DLE processes, with both parties committing to work on financing options for the definitive agreements.

Key Details

• Parties Involved: E3 Lithium Ltd. (developer of the Clearwater project in Alberta) and Axens (global provider of clean energy solutions and DLE technologies).
• Agreement Type: Non-binding Memorandum of Understanding (MOU).
• Transaction Structure: Two separate, non-dependent agreements:
  1. Of Take: E3 Lithium supplies lithium carbonate to Axens.
  2. Supply: Axens supplies lithium selective sorbent to E3 Lithium.
• Key Milestones:
  • E3 Lithium to produce battery-grade lithium at its demonstration facility for review through Axens's qualification process.
  • E3 Lithium to validate Axens's sorbent through standard testing and qualification for use within E3 Lithium's DLE processes.
• Strategic Rationale:
  • Derisks the Clearwater project supply chain for critical reagents.
  • Enables direct sale of battery-grade lithium carbonate into the European market without secondary processing.
  • Supports Axens' efforts to develop high-performance sorbents for direct lithium extraction.
• Financial/Project Context (from "About" section):
  • Clearwater project resources: 21.2 million tonnes LCE measured/indicated; 300,000 tonnes LCE inferred in Alberta; 2.5 million tonnes LCE inferred in Saskatchewan.
  • Prefeasibility Study metrics: 1.13-million-tonne-LCE proven and probable mineral reserve.
  • Pretax NPV (8% discount): $5.2 billion USD; IRR: 29.2%.
  • After-tax NPV (8% discount): $3.7 billion USD; IRR: 24.6%.

Notable Quotes

• Chris Doornbos, President and CEO of E3 Lithium: "The MOU with Axens represents a mutually beneficial and symbiotic agreement that significantly derisks the Clearwater project... E3 Lithium's ability to produce battery-grade lithium carbonate on site without secondary processing enables a direct sale into the European market, a key differentiator for the company."
• Quentin Debuisschert, CEO of Axens: "This agreement with E3 Lithium greatly supports Axens's efforts to develop a high-performance sorbent for direct lithium extraction... Axens is excited to continue moving forward with E3 Lithium to advance our respective projects on battery materials developments in the common interest of both companies."