Trafigura Locks In 10-Year Lithium Supply Deal With EnergyX

Commodity trading house Trafigura has committed to a decade-long lithium purchasing arrangement with US-based producer EnergyX, covering a total of 100,000 tonnes of battery-grade material drawn from two separate extraction projects. The binding offtake agreement gives Trafigura claims on output from EnergyX’s Black Giant operation in Antofagasta, Chile, and the Lonestar project located in Texas.

The two sites produce different forms of the metal, which matters for how the material eventually gets used. Black Giant will yield lithium carbonate, the compound most commonly fed into LFP battery cathodes. Lonestar, by contrast, is set to deliver lithium hydroxide, which serves as a key input for NMC and NCA chemistries. Under the terms, Trafigura has agreed to take 66 per cent of first-phase volumes from Black Giant and 30 per cent of first-phase Lonestar output. The company said a substantial share of what it purchases will be directed toward American battery manufacturing.

EnergyX pegs the deal’s value at above two billion US dollars, calculated against prevailing lithium prices. Whether Trafigura pays spot rates or operates under a fixed pricing structure remains undisclosed, as neither party would address the question. The arrangement marks Trafigura’s second major lithium commitment this year, following a March agreement with Smackover Lithium for 80,000 tonnes of battery-grade lithium carbonate over ten years from the South West Arkansas Project. Together, the two contracts underscore the trader’s push to establish itself as a midstream player in critical minerals.

EnergyX founder and CEO Teague Egan framed the agreement as a validation signal for the wider market. He noted that long-term purchase commitments from buyers of Trafigura’s financial standing demonstrate genuine demand for the company’s product, while also giving lenders and investors the revenue certainty they need before bankrolling commercial-scale construction. Securing offtake is widely regarded as a pivotal milestone for junior lithium developers, since it bridges the gap between feasibility studies and the heavy capital expenditure required to build processing facilities.

Daniel von Arx, who heads battery metals at Trafigura, said the deal reflects the trader’s capacity to help bring strategic minerals projects into production and to construct diversified supply networks. He pointed to Trafigura’s logistics infrastructure and market knowledge as assets it will deploy to move the lithium products to customers, with the aim of serving both the US automotive sector and the stationary energy storage industry. The agreement arrives as Western governments and manufacturers continue working to reduce reliance on Chinese refining for battery raw materials.