Fresh Lithium Offtake Partnership Deal Targets 200,000 Tons Annual Purchase

A fresh plan to produce direct shipping ore from the Nigerian lithium projects of Chariot Resources has been heightened by a non-binding financing and offtake Memorandum of Understanding (MoU) with Shanghai GreatPower Nickel & Cobalt Materials.

Chariot is speeding toward a potential spodumene concentrate offtake deal from its Nigerian lithium projects under an MoU with Shanghai GreatPower.

Both parties have reportedly signed a non-binding MoU with Shanghai for lithium offtake, a deal that has potential covering up to 200,000 tpa of spodumene concentrate from Nigerian projects

The Parties would finalise discussions on credit lines and potential development of lithium processing facility

The MoU, with the leading Chinese battery materials and technology group covers the potential sale and delivery of DSO lithium from the projects to a collection point at Sagamu, Nigeria.

On completion of satisfactory due diligence and execution of a binding agreement, Shanghai GreatPower could purchase up to 200,000 tonnes per annum of spodumene concentrate from one of Chariot Resources of four Nigerian projects.

The two parties have also agreed to discuss credit lines and offtake prepayment financing to support project exploration and development, which could facilitate expanded production at the projects.

Additionally, they have agreed to evaluate development of a lithium processing facility in Nigeria to convert ore into spodumene concentrate and incorporate sustainable, high-tech mining practices as part of their collaboration.

“Chariot, alongside our Nigerian partner, Continental Lithium Limited, is pleased to be in discussions with Shanghai GreatPower, a world-class battery materials company,” managing director Shanthar Pathmanathan said.

“As the first publicly listed lithium company operating in Nigeria, Chariot holds a significant early-mover advantage in this emerging region. We are particularly well-positioned through our partnership with Continental Lithium Limited.

“The involvement of Shanghai GreatPower provides a strong endorsement of our strategy, bringing the technical expertise and potential funding necessary to unlock the full value of our Nigerian assets.”

Shanghai Greatpower founder and chairman Aaron Cao said the vertically integrated battery materials company recognised the potential of CC9’s projects to become a world-class hard rock lithium resource.

“The signing of this agreement with Chariot marks another milestone for GreatPower in its collaboration with high-quality upstream critical metal mines worldwide,” he added.

“Chariot’s project is expected to provide GreatPower with up to 200,000 tons per year of high-grade lithium concentrate, further strengthening GreatPower’s extensive layout in the production of battery raw materials in the downstream new energy industry chain.”

Cao added the two companies would also seek to extend their cooperation into a comprehensive, all-round collaboration.

“Under the shared vision of achieving ESG goals, GreatPower and Chariot will create long-term, mutually beneficial outcomes in areas such as green renewable energy for mining operations and electric mining trucks,” he said.

Shanghai GreatPower’s business is focused around nickel, cobalt, lithium and other critical minerals to become a core infrastructure provider for the digital clean energy era.

Its six industrial facilities produce battery-grade lithium carbonate (~5,000 tpa), refined cobalt (~15,000 tpa) and nickel products (~56,000 tpa) for domestic and international clients in the electric vehicle and energy storage sectors.

GreatPower’s customer base includes top-tier battery and automotive companies such as LG Energy Solution, CATL, BMW and Samsung. LG holds a 4.02 per cent interest in GreatPower.

The battery materials company also recycles about 15,000tpa of nickel and cobalt from spent batteries and is expanding nto next-generation cathode materials like lithium manganese oxide (LMO) and lithium manganese iron phosphate (LMFP).

Under the non-binding MoU, Shanghai GreatPower will select one of CC9’s four Nigerian lithium projects for offtake following successful due diligence along with the negotiation and execution of binding terms.

For this selected project, GreatPower would be able to secure long-term, exclusive priority offtake of up to 200,000tpa of spodumene concentrate.

Pricing will be linked to an agreed international benchmark for 5.5–6.0 per cent Li2O.

This will require the completion of, an appropriate level exploration, including drilling, definition of a JORC-compliant resource;Metallurgical studies; Evaluation of toll processing options and ore transportation logistics;Other technical studies; and The securing of any necessary permits.

Additionally, the proposed lithium processing plant will enable run-of-mine ore to be upgraded onsite into spodumene concentrate, subject to mutually favourable terms.

Both parties will also explore the use of Shanghai GreatPower’s intelligent electric mine trucks and renewable energy solutions to CC9’s projects.

While the MoU is non-exclusive, both companies intend to enter a period of exclusive negotiations for up to 90 days once a project for offtake is selected