Nemaska Lithium Terminates Multi-Year Supply Agreement with Livent Corporation

Canadian-based Namaska Lithium announced that it has terminated its multi-year supply agreement with Livent Corporation.

According to the press release from Namaska Lithium, the Supply Agreement pertains to the provision of up to 8,000 tonnes per year (28,000 tonnes in total during the term of the contract) of lithium carbonate starting April 1, 2019.

Livent Corporation confirmed that it had “received from Nemaska Lithium Inc. a notice of termination of the parties’ multi-year supply agreement, under which Nemaska is obligated to start supplying lithium carbonate to Livent starting April 1, 2019.”

“Nemaska does not have a right to terminate the agreement and Livent intends to enforce its rights as part of the arbitration Livent filed in July 2018.”

The company says that Livent and Nemaska had previously suspended the arbitration while they sought to negotiate a revised schedule, among other agreements, for the supply of lithium carbonate. Livent will continue arbitration and intends to vigorously pursue its claims.

Nemaska told Livent that it “might have no option but to terminate” the agreement and repay Livent the USD$10 million the it received in April 2017 “plus a similar amount as a termination fee”.

Nemaska said that “despite good faith negotiations, [it] was unable to reach a mutually satisfactory outcome with Livent” and that Livent “is seeking arbitration, which Nemaska “will vigorously defend.”

“The company’s “objective remains to close the required financing on time to stay on target to complete mine construction in October 2019, in order to make the first shipment in December 2019.”” President and CEO Guy Bourassa stated that Nemaska’s “objective remains to close the required financing on time to stay on target to complete mine construction in October 2019, in order to make the first shipment in December 2019.”

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