Prairie Lithium (ASX:PL9) has signed a binding offtake heads of agreement with Hydro Lithium covering Phase 1 production from its Saskatchewan project. Under the ten-year arrangement, Hydro Lithium will purchase all of Prairie's lithium-bearing crystallite — supporting up to around 150 tonnes per annum of lithium carbonate equivalent — as feedstock for its South Korean refinery, which produces battery-grade lithium carbonate and lithium hydroxide.

Pricing follows a formula linked to battery-grade lithium carbonate benchmarks, adjusted for lithium content, conversion cost and efficiency. Managing director Paul Lloyd said the agreement demonstrates how the company will sell its initial production and generate early revenue without building its own refining capability, while a scaling provision commits both parties to work toward crystallite supply capable of supporting up to 10,000 tonnes per annum of LCE.

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