Galaxy Resources Limited (ASX:GXY) Achieves 100% Sales Offtake Agreements
Perth, April 12, 2010 AEST (ABN Newswire) - Galaxy Resources Limited (
ASX:GXY) (PINK:GALXF) is pleased to announce that it has executed agreements with thirteen major Chinese lithium cathode producers for the offtake of its battery grade lithium carbonate product.
When coupled with the sales agreement with Mitsubishi Corporation, the commercially confidential offtake agreements signed now equate to 100 per cent of Galaxy's 17,000 tonnes of lithium carbonate production per annum and involve the supply of battery grade product commencing in 2011.
Galaxy Resources Managing Director, Mr Iggy Tan, said that securing offtake customers for all of the total output confirmed the quality of the project and Galaxy's ability to capitalise on the future demand within the lithium market.
"We are pleased to have secured major Chinese lithium cathode producers as the foundation customers of lithium carbonate produced at our Jiangsu Plant," Mr Tan said.
"The unanimous message received from all of the lithium cathode producers during recent marketing trips has been that Galaxy's project will deliver the right product, from the right place, at the right time.
"Almost all of the lithium cathode producers Galaxy has engaged with are significantly increasing capacity in the coming 12 to 24 months and by signing up for our product, these foundation customers are acknowledging the strength of the Galaxy project, particularly as it provides security of supply for battery grade lithium carbonate needed to underpin their expansion plans.
"We have essentially locked in the future growth potential of the Chinese and Japanese battery grade lithium carbonate market for the next five years," he said.
Galaxy's strategic objective is to produce the highest battery grade product in a new era of lithium carbonate demand.
The Company remains well placed to capitalise on its first mover advantage in the lithium carbonate market, the highest growth sector of all the lithium products.
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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