Cathode material manufacturer Umeko signs "long-term sustainable lithium supply agreement" with Ganfeng Lithium Industry and Vulcan

On October 15, Umico officially announced the signing of long-term lithium supply agreements with Jiangxi Ganfeng Lithium Industry Co., Ltd. And Vulcan Energy Resources. The initial term of both agreements is five years, and the cooperation period can be extended with the agreement of both parties.

Lithium is a key raw material for the production of cathode materials in lithium-ion batteries for electric vehicles. With the accelerated transition to electric mobility in major regions of the world, the regional supply of this key raw material will meet the growing demand for cathode materials from automotive customers around the world. The signing of these two long-term agreements will also provide additional help for the sustainable development of Umico.

Through these agreements, Umicor reaffirmed its strong commitment to "support customer global growth by creating a sustainable battery material value chain". At the same time, each supplier working with Umicor has been evaluated to ensure that it is in full compliance with the environmental and human rights principles outlined in Umicor's sustainable procurement prospectus, and the supplier's carbon footprint is also an important factor in Umicor's consideration.

Mathias Miedreich, CEO of Umicor, said:

Umico's own goal is to achieve net zero greenhouse gas emissions (range 1 and range 2) by 2035. Mathias Miedreich, CEO of Umicor, said: "given the accelerated transition to electrified mobility, ensuring a reliable supply of critical raw materials is critical and necessary to be environmentally and socially responsible. These long-term supply agreements not only mark another important process in Umicor's sustainable procurement strategy, but also demonstrate our strong commitment to supporting global customer growth by creating sustainable and regional battery material value chains. "

The agreement between Umicor and Jiangxi Ganfeng Lithium Industry Co., Ltd. involves the supply of lithium from 2022 and will cover a major portion of future lithium demand in Asia. The lithium will meet the most stringent sustainability standards and will be extracted from Australia's hard rock deposits.

Mr. Wang Xiaoshen, vice chairman of Ganfeng Lithium Industry, said:

"We look forward to cooperation with Umicor in the future," added Mr. Wang Xiaoshen, vice chairman of Ganfeng Lithium Industry. "We also believe that our sustainable and high-quality lithium products will help Umico create a sustainable value chain."

In addition, the agreement reached between Umicor and German-Australian company Vulcan Energy Resources will also come into effect in 2025, which will meet some of Umicor's future lithium hydroxide needs in Europe. At the same time, during the term of the agreement, Umicor will be allowed to purchase 28000 to 42000 tons of lithium hydroxide. The lithium hydroxide will be collected by Vulcan Energy within the framework of its unique German zero-carbon lithium hydrogen project, which uses natural renewable geothermal energy to extract lithium from deep brine with zero carbon dioxide emissions.

Francis Wedin, managing director of Vulcan, said:

"as the first direct customer of Vulcan lithium hydroxide products in Europe, Umicor, a leading manufacturer of cathode materials, will also become a valuable off-take partner for Vulcan in the future." Francis Wedin, managing director of Vulcan, commented:

"importantly, Umico also shares our ambitious goal of decarbonizing the European battery supply chain by building a carbon-neutralizing cathode plant in Poland. We look forward to a long-term and fruitful cooperation with Umicor in the process of promoting the zero-carbon lithium battery project. "