South Korean trading company STX said Monday that it has signed a trilateral agreement with its partners based in Peru and Brazil, forming a secure supply chain that includes mining lithium and processing lithium concentrate. Lithium is a key mineral used for making rechargeable batteries.
Under the partnership, STX announced a strategic equity investment in a lithium mine in Peru, which is estimated to have 18.1 million metric tons of lithium deposits.
Signing an offtake agreement, it will also serve as a bridge between a Brazil-based lithium concentrate supplier with an annual production capacity of 272,155 metric tons and South Korea’s secondary battery companies. After thorough sampling testing, the company will undertake the lithium processing in Korea or another country.
In addition, STX also discussed the launch of a lithium refinery with the nation’s battery makers. Taking charge of mining, refining, transporting and selling, STX will be able to secure competitiveness in the overall lithium supply chain, the trading firm said.
While uncertainties have arisen as South American countries such as Mexico and Chile are nationalizing their lithium deposits and amid the US' implement of the Inflation Reduction Act, STX will provide a stable supply chain of the main minerals of battery production including nickel, cobalt, graphite and lithium for Korean companies.
This is a part of STX’s plan to give momentum to Trollygo, its business-to-business online trading platform of raw materials and industrial goods, set to be launched by the end of November. Last month, it also decided to make a paid-in capital increase to secure the necessary funds for the potential markets of Trollygo.
Specializing in secondary battery raw materials, STX will strive to lead the new paradigm of the trading industry with its B2B platform, the company added.