Lithium Universe (ASX:LU7) secures long term spodumene feedstock for Québec refinery

Lithium Universe has moved to lock in a critical upstream component of its North American refining strategy, signing a binding long term spodumene offtake agreement designed to underpin feedstock security for its planned Bécancour Lithium Refinery in Québec.

The agreement arrives as lithium prices recover from cyclical lows and as governments across North America continue to emphasise onshore processing and supply chain resilience for battery materials.

Highlights

• Binding 10 year Definitive Offtake Agreement, rolling to successive 5 year terms

• Up to 80,000 tpa of spodumene concentrate grading 6.0% Li₂O

• Feedstock sourced from the Norah Lithium Project in Nigeria

• Pricing linked to Shanghai Metals Market SC6 benchmark with a 7.5% strategic partner discount

• Norah concentrator under construction with completion expected in 2026

Under the Definitive Offtake Agreement, privately held Norah Mining will supply Lithium Universe with up to 80,000 tpa of spodumene concentrate commencing in late 2026.

The material will be produced from Norah’s lithium project in north west Nigeria, where a fully funded concentrator is currently under construction and scheduled for completion in the second half of 2026.

The agreement provides a long dated and contractually defined source of raw material intended to support long term operations at Lithium Universe’s Bécancour Lithium Refinery.

The Bécancour facility is designed to produce 18,270 tpa of battery grade lithium carbonate and has been positioned as a cornerstone asset within Canada’s onshore critical minerals processing strategy.

Securing feedstock at this stage addresses one of the key execution risks for downstream lithium projects, namely access to reliable, specification compliant spodumene concentrate at predictable commercial terms.

Under the agreement, Lithium Universe will purchase the concentrate outright, retain ownership of the resulting lithium carbonate, and hold exclusive rights to market and sell the product, including into open market channels where required.

Commercially, pricing is linked to the Shanghai Metals Market SC6 benchmark, adjusted to an FOB Nigeria basis, with Lithium Universe benefiting from a 7.5% strategic partner discount.

The structure also allows Lithium Universe to trade spodumene to third parties prior to the Bécancour refinery being ready to receive material, providing flexibility during the commissioning window.

The agreement further includes rights of first participation should a change of control or material ownership transaction occur at Norah Mining, offering an additional layer of strategic optionality without mandating capital deployment.

Operationally, Lithium Universe will provide technical advisory services to Norah, drawing on management and board experience from established hard rock lithium operations including Mt Cattlin and Greenbushes.

This advisory role covers development, commissioning and ramp up of the Nigerian concentrator and aligns incentives across the upstream and downstream components of the supply chain.

In announcing the agreement, Executive Chairman Iggy Tan said

“By securing half of the feedstock for our Bécancour Lithium Refinery, we’re laying the foundation for long term operational certainty and independence from foreign converters.”

The comment underscores the strategic intent of the arrangement rather than its near term production impact.

The timing also intersects with Lithium Universe’s February 2025 Definitive Feasibility Study for Bécancour, which assumed long term lithium carbonate pricing of approximately US$20,970 per tonne.

Spot prices have since recovered to around US$24,000 per tonne, reinforcing the economic relevance of securing feedstock under defined terms while engineering, permitting and commercial work progresses.

In a broader industry context, the agreement highlights Nigeria’s growing role in global spodumene supply, supported by the transition from artisanal production toward regulated, export grade concentrate operations.

For Lithium Universe, the offtake represents a tangible step in assembling an integrated supply chain across Canada and the United States, with feedstock security now more clearly aligned with its downstream ambitions as the lithium market emerges from its recent downturn.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.