EnergyX Secures $2 Billion Binding Lithium Supply Deal with Trafigura

EnergyX, a lithium technology company, has signed a binding offtake agreement with commodities trading giant Trafigura, valued at approximately $2 billion. Under the ten-year deal, EnergyX will supply 100,000 tonnes of lithium products from its planned facilities in Chile and Texas. The pricing is based on current lithium prices of around $20,000 per tonne. However, production is not yet online, and EnergyX will need to secure additional financing to build both plants.

The agreement is expected to strengthen EnergyX’s application for a $690 million loan from the U.S. Export-Import Bank. Trafigura has committed to purchasing 5,000 tonnes annually of lithium carbonate and lithium hydroxide. Notably, the contract includes a take-or-pay clause, meaning Trafigura must pay even if it does not take delivery of the material.

In Chile, EnergyX plans to start producing 7,500 tonnes per year of lithium carbonate beginning in 2028. Trafigura would purchase roughly two-thirds of that output. In Texas, the company aims to produce 15,000 tonnes per year of lithium hydroxide starting in 2029, with Trafigura’s offtake representing one-third of that planned volume. Trafigura intends to initially sell the lithium to Chinese customers, but in the long term, it seeks a larger role in the U.S. market as the domestic battery supply chain develops.

EnergyX is focused on direct lithium extraction (DLE), which uses various filtration methods. The company combines established technologies with off-the-shelf equipment and tests its processes at a lab in Austin. The deal underscores the growing demand for lithium and the push to build out Western supply chains, though the timeline and financing remain key challenges.