Libertystream, Packet sign U.S. lithium supply MOU

Executive Summary

• Libertystream Infrastructure Partners Inc. entered into a Memorandum of Understanding (MOU) with Packet Digital LLC to support the supply of battery-grade lithium carbonate for Packet's U.S.-based manufacturing of smart batteries for military and industrial applications.
• The partnership involves technical data sharing and coordinated planning for future deliveries, aiming to establish a vertically integrated battery ecosystem in North Dakota and strengthen the domestic supply chain for critical minerals.
• Libertystream secured approximately $2.7 million in aggregate gross proceeds through the exercise of outstanding share purchase warrants and stock options, as well as non-dilutive grant funding, to support commercial-scale production initiatives in Texas and North Dakota.

Key Details

• Parties Involved: Libertystream Infrastructure Partners Inc. (Libertystream) and Packet Digital LLC (Packet Digital), based in Fargo, N.D.
• Agreement Type: Memorandum of Understanding (MOU).
• Strategic Objective: To collaborate and share technical data for Packet's present and future lithium carbonate requirements for U.S.-based manufacturing.
• Supply Chain Integration: Libertystream will support Packet Digital’s demand for battery-grade lithium carbonate. The collaboration integrates Libertystream’s direct lithium extraction (DLE) capabilities with Packet Digital’s cell manufacturing operations to streamline supply logistics and improve process efficiency.
• Production Timeline: Packet Digital supports Libertystream’s field refining operations as they commence production in late 2025.
• Geographic Focus: Operations and supply chain integration span Texas (Libertystream’s refining unit) and North Dakota (Packet Digital’s manufacturing and sourcing).
• Financial Update: Libertystream received aggregate gross proceeds of approximately $2,736,081 (combined Canadian and U.S. dollars).
• Source of Funds: The proceeds resulted from:
  • Exercise of outstanding share purchase warrants.
  • Exercise of stock options (including by board members and the largest institutional shareholder).
  • Receipt of previously announced non-dilutive grant funding.
• Use of Proceeds: Funds will directly support strategic initiatives in Texas and North Dakota, specifically advancing the transition to commercial-scale lithium carbonate production through commissioning and operations at the refining unit in Texas.
• Counterparty Partner: The MOU is structured in partnership with Wellspring Hydro.

Notable Quotes

• Terri Zimmerman, CEO of Packet Digital: "We're establishing a vertically integrated battery ecosystem in North Dakota, where Packet Digital manufactures smart batteries and sources critical minerals -- such as lithium carbonate -- through local production channels... Our partnership with Libertystream aligns with this vision and we are pleased to support their field refining operations as they commence production in late 2025."
• Alex Wylie, President and CEO of Libertystream: "Libertystream is honored to partner with the Packet Digital team to strengthen the secure, domestic supply of critical minerals essential for next-generation battery and power systems... This partnership reflects our shared commitment to building a resilient domestic supply chain and producing premium lithium products for American customers through integrated operations across both states."