Australian resources firm Power Minerals has entered into an initial offtake, funding and logistics agreement for its Salta lithium brine project in Argentina with China's Xiamen Xiangyu New Energy.
The agreement provides for an 180-day due diligence period for the completion of a binding agreement for the development of the project, which comprises five salt lakes in lithium-rich Salta province. One of the salt lakes in the 147km² tenement package is next to two lithium projects being separately developed by China's Jiangxi Gangfeng and UK-Australian resources firm Rio Tinto.
Xiamen Xiangyu sources battery metals such as lithium, nickel and cobalt for processing plants and battery manufacturers, with German auto producer Volkswagen the buyer for its lithium supply agreements.
