Pantera Minerals has reported a significant commercial milestone for its strategic investment in US-based lithium developer EnergyX, following a binding 10-year supply agreement with global commodities trader Trafigura covering 100,000 tons of battery-grade lithium products.
The agreement marks EnergyX's first publicly announced lithium offtake deal and provides a commercial pathway for future production from its Black Giant™ project in Chile and Lonestar project in Texas, United States.
EnergyX has estimated the agreement could represent approximately US$2 billion in revenue over its 10-year term, based on an assumed lithium price of US$20,000 per ton. The figure is indicative rather than a fixed contract value, with actual revenue dependent on pricing terms, project development and deliveries.
For Pantera, the agreement represents a commercial development for an investment that provides exposure to EnergyX's lithium technology and project portfolio.
The ASX-listed company holds 2.34 million shares in privately held EnergyX, with an estimated carrying value of approximately A$42 million based on EnergyX's most recent priced capital raising.
While Pantera is not a party to the supply agreement and has no direct entitlement to revenue generated under it, the transaction represents a step forward for the underlying projects supporting its strategic investment.
Under the agreement, Trafigura will secure approximately 66% of Phase 1 offtake from EnergyX's Black Giant™ lithium carbonate project in Antofagasta, Chile, and 30% of Phase 1 offtake from its Lonestar lithium hydroxide project in Texas.
The take-or-pay structure provides a contractual commitment to purchase specified lithium volumes, subject to the agreement's terms, supporting EnergyX's efforts to establish long-term commercial arrangements for its planned production.
The agreement also has implications for EnergyX's project financing strategy.
EnergyX has previously secured a non-binding US$690 million letter of interest from the Export-Import Bank of the United States (US EXIM), with commercial offtake arrangements identified as an important requirement in progressing potential project financing.
EnergyX and Trafigura have stated that the agreement supports the bankability of the projects, although the proposed financing has not reached financial close.
Pantera Executive Chairman and CEO Barnaby Egerton-Warburton commented:
“A binding, take-or-pay offtake with a counterparty of Trafigura’s scale is a significant milestone for EnergyX, the company in which Pantera holds a strategic interest. It is the first commercial offtake EnergyX has announced, it covers both the Black Giant™ and Lonestar projects, and the parties have stated that it supports the bankability of those projects alongside the US EXIM letter of interest. It reinforces the rationale for the strategic position Pantera took in EnergyX. We will continue to keep shareholders informed of material developments.”
EnergyX is targeting commercial-scale production at Black Giant™ in 2028 and Lonestar in 2029, although these remain development targets rather than confirmed delivery commencement dates.
The projects must still progress through relevant approvals, financing, construction and commissioning before commercial production and deliveries can begin.
For Pantera shareholders, the next developments will center on EnergyX's progress towards financing and commercial production, with the company continuing to disclose material developments relating to its investment.