Lithium Ionic signs offtake deals for Bandeira
Advancing Brazil’s next high-grade, low-cost lithium producer toward a 2027 production goal.
The most recent news (March 25, 2026) announces that Lithium Ionic has secured binding five-year "take-or-pay" offtake agreements for its Bandeira lithium project in Brazil. The agreements are with Sichuan Yahua Industrial Group and Grand Chen Resources for a combined 170,000 tonnes per annum of spodumene concentrate. Crucially, the deal includes a $20 million USD prepayment facility and sets a price floor of $1,000/t (SC6 basis) with no maximum price cap, allowing the company to retain upside in a rising market.
This news is Material - Positive for several reasons: - Bankability: Offtake agreements with Tier 1 counterparties are a prerequisite for securing the debt financing required for the $191M USD CAPEX. - Downside Protection: The $1,000/t price floor is significantly above the project’s estimated site operating cost of $378/t, ensuring healthy margins even in depressed market conditions. - Liquidity: The $20M USD prepayment provides immediate non-dilutive capital to bridge the gap toward a Final Investment Decision (FID). - Validation: Partnering with Yahua (a major supplier to Tesla and BYD) validates the quality of Bandeira’s spodumene concentrate.
Lithium Ionic is a Canadian developer focused on the Bandeira Lithium Project in Minas Gerais, Brazil ("Lithium Valley"). - Flagship: Bandeira Project (100% owned). - Economics (Sept 2025 FS): Post-tax NPV(8%) of $1.45B USD, IRR of 61%, and a 2.2-year payback. - Production: 18.5-year mine life producing ~178,000 tonnes of spodumene concentrate (SC5.2) annually. - Status: Feasibility complete, detailed engineering underway (48%), offtakes secured.