Lithium Ionic Secures Offtake Agreements with Leading Integrated Lithium Producers, Including One of the World’s Largest Lithium Hydroxide Producers, for Bandeira Project Production
Lithium Ionic Secures Offtake Agreements with Leading Integrated Lithium
Producers, Including One of the World’s Largest Lithium Hydroxide Producers, for
Bandeira Project Production
Five-year agreements with US$1,000t floor price, no discount to spot pricing and full
upside exposure to support Project financing
TORONTO, ON, March 25, 2026 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N)
("Lithium Ionic" or the "Company") is pleased to announce that it has executed binding multi-year
offtake agreements with each of Sichuan Yahua Industrial Group Co., Ltd. (“Yahua Group”) and
Grand Chen Resources Pte. Ltd. (“Grand Chen”), two leading global lithium-ion battery materials
producers, for the supply of high-quality spodumene concentrate from its Bandeira Lithium Project
(the “Project”) in Minas Gerais, Brazil.
Highlights
Lithium Ionic will supply a combined 170,000 tonnes per annum of spodumene
concentrate under five-year binding take-or-pay offtake agreements to Yahua Group
and Grand Chen, two integrated counterparties serving tier -one battery and EV
manufacturers, including BYD and other leading OEMs.
Minimum price of US$1,000/t (6% spodumene concentrate grade basis, or “SC6”)
with no maximum price limit, reflecting a highly competitive pricing structure that
provides downside protection while maintaining full exposure to lithium price
upside.
Pricing indexed to prevailing market prices, with no discount to the applicable
market reference price, reflecting the strength and expected commercial quality of
the Bandeira Project.
US$20 million combined pre- payment facility associated with the offtake
agreements, aligned with the Project’s advancement toward construction.
Agreements materially enhance project bankability and strengthen the Company’s
position as it advances project financing toward a potential construction decision.
Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “We are very pleased to be partnering
with Yahua Group and Grand Chen - two highly capable and globally established participants in
the lithium supply chain, and Tier-1 suppliers to leading battery and electric vehicle
manufacturers. Their commitment to the Bandeira Project is a strong endorsement of both the
quality of our asset and our ability to deliver high-quality spodumene concentrate into global
markets. The commercial terms of these agreements reflect the strength of the Project and the
growing demand for reliable new sources of lithium supply. With offtake now secured, we are well
positioned to advance project financing and move Bandeira toward a construction decision.”
The execution of these offtake agreements represents a significant milestone in the advancement
of the Bandeira Project and provides strong third- party validation of its quality and strategic
importance within the rapidly growing global lithium supply chain.
Yahua and Grand Chen are established participants in the global lithium supply chain, with
integrated downstream conversion and supply into tier -one battery and electric vehicle supply
chains, including BYD, Tesla, CATL and LG Energy Solution. The counterparties have existing
working relationships with members of the Lithium Ionic development team, including RTEK
International (see April 2, 2025, press release for further details), providing continuity and
supporting efficient execution as the Bandeira Project advances toward financing and
development. Their downstream integration and conversion capabilities further strengthen the
marketability of Bandeira concentrate and support competitive commercial terms as the Project
progresses toward production.
In connection with the offtake agreements, Yahua Group and Grand Chen have agreed to provide
the Company with an aggregate amount of US$20 million in pre-payment facilities. The facilities
are subject to the execution of definitive agreements on market -standard terms and is expected
to align with the advancement of the Bandeira Project toward a construction decision.
About Yahua Group
Yahua Group is one of the world’s largest lithium hydroxide producers and a leading global lithium
chemicals company with a vertically integrated platform spanning resource development, refining,
and supply to major battery and electric vehicle manufacturers. The company maintains a
diversified international resource base across China, Africa, and Australia and supplies lithium
chemicals to tier -one customers including Tesla, CATL, LG Energy Solution, BMW and BYD.
Further strengthening its downstream positioning, Yahua has partnered with LG Energy Solution
to develop a lithium hydroxide conversion facility in Morocco, tar geting approximately 50,000
tonnes per annum of battery-grade production to serve European and North American markets.
About Grand Chen
Grand Chen is a vertically integrated participant in the global lithium supply chain, with capabilities
spanning resource acquisition, processing, and supply to battery and electric vehicle
manufacturers. Since its establishment in 2013, the company has built an international presence
across Africa and Asia, supported by strategic partnerships with state -owned enterprises and
industrial groups. Grand Chen maintains established commercial relationships with downstream
customers, including BYD, and its proces sing capabilities and diversified sourcing strategy
support consistent access to high -quality feedstock, positioning the company as a reliable
counterparty in the global battery materials market.
On behalf of the Board of Directors of Lithium Ionic Corp.
Blake Hylands
Chief Executive Officer, Director
About Lithium Ionic Corp.
Lithium Ionic is a Canadian lithium development company focused on responsibly advancing it’s
100%-owned Bandeira Lithium Project in Minas Gerais, Brazil, a region coined the “Lithium
Valley” that is emerging as a world-class hard-rock lithium district. The Company is executing on
a focused development strategy centered on engineering de- risking, permitting advancement,
commercial planning, and construction readiness, with the goal of becoming a near-term producer
of high-quality spodumene concentrate for global battery supply chains.
Qualified Persons
The contents of this news release has been reviewed and approved by Blake Hylands, CEO and
director of Lithium Ionic, who is a “qualified persons” as defined by NI 43-101. Mr. Hylands is not
considered independent of the Company.
Investor and Media Inquiries:
+1 647.316.2500
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute “forward -statements.” Such forward -
looking statements involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance or achievements, or developments to differ
materially from the anticipated results, performance or achievements expressed or implied by
such forward-looking statements. Although the Company believes, in light of the experience of its
officers and directors, current conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in this forward -looking
information are reasonable, undue reliance should not be placed on them because the Company
can give no assurance that they will prove to be correct. When used in this press release, the
words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon or comparable terminology
are intended to identify forward- looking statements and information. The forwar d-looking
statements and information in this press release include information relating to the the economic
viability of Bandeira, the financing of the Project, the development of the Bandeira project , the
offtake agreements for production from the Bandeira Project, the Company’s the engineering,
ESG and permitting activities at Bandeira, the Company’s ability to obtain the requisite permitting
and approvals and the timing thereof, RTEK’s services to the Company, the Company’s ability to
obtain financing, including the completion of any prepayment facilities and the Company’s future
plans. Such statements and information reflect the current view of the Company. Risks and
uncertainties that may cause actual results to differ materially from those contemplated in those
forward-looking statements and information. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be materially different from any future
results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this news release represents the expectations of the
Company as of the date of this news release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking information and should not
rely upon this information as of any other date. The Company undertakes no obligation to update
these forward-looking statements in the event that management’s beliefs, estimates or opinions,
or other factors, should change.
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