Lilac Solutions and Traxys North America have signed a 10-year agreement for 50,000 tonnes of lithium carbonate from a Utah facility. The deal secures full Phase 1 production capacity, potentially doubling current US domestic lithium output for electric vehicle batteries.
Lilac Solutions has secured a binding 10-year offtake agreement with Traxys North America that would purchase the entire Phase 1 production from its planned lithium extraction facility at the Great Salt Lake in Utah. The deal represents a significant step toward expanding domestic US lithium supply for the EV industry at a time when manufacturers are seeking to reduce dependence on foreign sources.
Under the take-or-pay agreement, Traxys will purchase 50,000 tonnes of lithium carbonate over the contract period, equivalent to 100 percent of the facility’s initial planned capacity. The pricing structure is linked to market indices, though specific terms were not disclosed.
The Phase 1 facility is designed to produce 5,000 tonnes annually of battery-grade lithium carbonate, which would nearly double current US production levels. For the broader EV industry, establishing additional domestic production capacity addresses supply chain concerns that have challenged vehicle manufacturers as they scale battery production to meet emissions regulations and consumer demand.
Lilac’s technology uses ion exchange processes to extract lithium from low-grade brine resources that traditional methods cannot economically process. Pilot operations completed in 2025 achieved 87 percent lithium recovery from brine containing just 69 milligrams per liter of lithium, demonstrating the technology’s viability on challenging feedstock.
“Traxys, one of the world’s leading lithium traders, has been an excellent partner as we’ve developed this project, and formalizing this long-term offtake agreement is a key step toward achieving final investment decision,” said Raef Sully, chief executive officer of Lilac Solutions.
Martim Facada, managing director of lithium trading at Traxys, stated that “Lilac’s unique technology and deep sector experience combined with Traxys’ global market reach, expertise in natural resources and supply chain financing will contribute greatly to bring Lilac’s lithium carbonate to market to supply the lithium-ion battery industry.”
The project’s longer-term potential includes a Phase 2 expansion that would increase total capacity to 20,000 tonnes per year, approaching four times current domestic output. This scaled production could provide a meaningful portion of the lithium needed for North American battery manufacturing facilities currently under construction or in planning stages.
Lilac has completed detailed engineering work and is coordinating with Utah regulators on construction permits. The company’s extraction process returns lithium-depleted brine to the lake without consuming water, addressing environmental considerations that have complicated other lithium projects. Ion exchange materials will be manufactured at Lilac’s Nevada facility.
