US commodity trader Traxys has inked a 10-year offtake agreement with direct lithium extraction technology firm, Lilac Solutions, worth about US$1 billion at current lithium carbonate prices.
The circa-$10 billion-a-year Traxys group has been a global lithium trader for decades.
Privately-owned Lilac says the offtake deal for 100% of the planned phase-one output from its 5000 tonnes-per-annum Great Salt Lake lithium carbonate plant in Utah “represents a major milestone in advancing the project toward construction and establishes a clear commercial pathway for one of the nearest-term domestic lithium projects in the United States”.
Spot battery-grade lithium carbonate prices are currently about US$19,800/t, the strongest levels in more than two years.
Lilac aims to nearly double current US lithium carbonate production with its proposed 5000tpa facility, which will use Lilac’s Gen 5 ion exchange technology. It claims to have achieved 87% lithium recovery on Great Salt Lake’s low-grade brine (69 mg/litre lithium) during pilot plant operations in 2025.
“Traxys, one of the world’s leading lithium traders, has been an excellent partner as we’ve developed this project, and formalising this long-term offtake agreement is a key step toward achieving final investment decision,” Lilac CEO Raef Sully said.
“With FEL‑3 engineering complete and regulatory approvals progressing, securing offtake for 100% of planned output moves us closer to construction of a significant new source of domestic lithium.”
Traxys managing director lithium trading, Martim Facada, said Lilac’s unique technology and deep sector experience combined with Traxys’ global market reach, expertise in natural resources and supply chain financing would “contribute greatly to bring Lilac’s lithium carbonate to market to supply the lithium-ion battery industry”.
Lilac proposes to produce up to 20,000tpa of LCE with future phase two expansion in Utah.
It says its non-consumptive process enables high lithium recovery with minimal water use and no evaporation ponds, providing a sustainable alternative to conventional extraction methods.
