Elevra Lithium Locks in LG Energy Solution as Customer for 240,000 Tonnes of Spodumene
Key Takeaways
- Elevra has signed a binding agreement to supply LG Energy Solution with 240,000 dmt of spodumene concentrate from North American Lithium over three years from first shipment, expected in 2026.
- Contracted volumes ramp from 30,000 dmt in 2026 to 90,000 dmt in 2029, with up to 90,000 dmt of optional extra supply subject to agreement between both parties.
- Market-linked pricing means Elevra keeps full exposure to lithium price moves while the base volumes add visibility over future deliveries.
- Price levels, payment terms, revenue value and the share of NAL output covered were not disclosed, so the earnings impact cannot yet be sized.
- CEO Lucas Dow says the deal implements the commercial strategy from the FY26 results, aimed at a diversified portfolio of high-quality customers as the NAL expansion progresses.
Elevra signs binding spodumene supply agreement with LG Energy Solution
Lithium producers rarely get to name a customer, so a binding contract with a global battery maker deserves a close look. Elevra Lithium (ASX:ELV; NASDAQ:ELVR) has executed a binding Spodumene Concentrate Supply Agreement with LG Energy Solution for spodumene concentrate produced at North American Lithium (“NAL”) in Québec.
The spodumene supply agreement provides for the aggregate supply of 240,000 dry metric tonnes (dmt) over a three-year term commencing from the date of the first shipment, which is expected to be delivered in calendar year 2026. Elevra announced the agreement on 8 October 2026.
For investors, the appeal is a committed customer for a meaningful portion of NAL’s production, with exposure to market pricing retained.
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Contracted volumes and pricing structure
The announcement sets out a year-by-year volume schedule and a market-linked pricing basis. Detailed price levels and commercial terms were not disclosed.
Delivery schedule
The table below shows the contracted base quantity as listed in the announcement.
| Year | Contracted base quantity (dmt) |
|---|---|
| 2026 | 30,000 |
| 2027 | 60,000 |
| 2028 | 60,000 |
| 2029 | 90,000 |
| Total | 240,000 |
The schedule is presented as written in the source.
Optional volume and pricing
Beyond the base quantity, the agreement includes the following terms:
- Elevra may supply up to 90,000 dmt of optional volume over the three-year term, subject to agreement between both parties.
- The agreement establishes market-linked pricing for spodumene concentrate adjusted for lithium content.
The pricing formula, price levels and payment terms were not disclosed.
Market-linked pricing means Elevra keeps exposure to lithium price movements, while the base volumes add visibility over future deliveries.
What a spodumene concentrate supply agreement means for investors
Spodumene is a lithium-bearing mineral mined from hard rock. Spodumene concentrate is the product that results once the ore is processed, and it is then converted into lithium chemicals used in batteries.
A supply agreement, often called an offtake, links a producer to a buyer. The producer gains a committed customer, and the customer gains a secured source of material.
“Market-linked” pricing means revenue moves with market prices rather than being locked at a fixed price. When lithium prices rise, revenue per tonne can rise too, and the reverse applies when prices fall.
The announcement describes LG Energy Solution as a “leading global battery manufacturer.” What this tells you is that Elevra now has a named, binding customer for NAL’s output, though the revenue value was not disclosed.
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Strategy, diversification and the NAL expansion
The agreement is aligned with Elevra’s commercial strategy to prioritise establishing strategic customer relationships while developing a more diversified and market-aligned sales portfolio for NAL with improved commercial terms.
Lucas Dow, Managing Director and Chief Executive Officer
“This agreement with LG Energy Solution represents an important step in implementing the commercial strategy we outlined with our FY26 annual results. It provides Elevra with a committed customer for a meaningful portion of NAL’s production while retaining exposure to spodumene concentrate market pricing.”
Dow also said securing the customer supports a strategy of building a diversified portfolio of high-quality customers as production increases and the NAL expansion progresses.
The announcement does not disclose the percentage of NAL output the agreement represents, the revenue value or expansion timelines.
Elevra’s assets comprise:
- North American Lithium (100%)
- Moblan Lithium Project (60% stake), Central Québec
- Carolina Lithium Project (100%), United States
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