Here’s why the Infinity share price is powering 6% higher today

The lithium explorer’s shares are rebounding…
The post Here’s why the Infinity share price is powering 6% higher today appeared first on The Motley Fool Australia. –

The Infinity Lithium Corporation Ltd (ASX: INF) share price is on the move today. This follows the lithium explorer signing of a Memorandum of Understanding (MOU) for the offtake of lithium hydroxide (LiOH).

At the time of writing, Infinity shares are up 6.10% to 8.7 cents.

Infinity progresses lithium hydroxide development

In a statement to the ASX, Infinity advised it has entered into a non-binding MOU with LG Energy Solution.

Based in South Korea, LG Energy Solution is a global leader that is focused on producing advanced lithium-ion batteries. The eco-friendly company services the electric vehicles, mobility & IT applications, and energy storage systems market.

The collaboration will seek to form an agreement for the long-term supply of battery grade LiOH from the San José Lithium Project.

The terms of the MOU are set out below:

Potential supply of LiOH for an initial 5-year period with the potential to continue for a further 5 years;
First right to 10,000 tonnes per annum of LiOH product with additional volumes under the MOU subject to negotiations and agreement;
The purchase price for LiOH set to be set at market prices, pending approval by both parties.

Infinity noted that it aims to have the MOU formed into a binding offtake agreement within the next 12 months. 

Infinity CEO and managing director, Ryan Parkin said:

We are delighted to announce the commencement of a long-term commercial relationship with tier one partner LG Energy Solution, welcoming the potential to support a global leading lithium-ion battery producer to secure essential facets of the supply chain.

About the Infinity share price

From the beginning of 2021 to mid-February, Infinity shares rocketed higher to reach a multi-year high of 28 cents. However, since then, its shares plummeted 67% after being suspended from trading on the ASX in April.

At today’s price, Infinity commands a market capitalisation of around $35 million, with over 402 million shares outstanding.

The post Here’s why the Infinity share price is powering 6% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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