Lilac and Traxys sign 10-year offtake for Great Salt Lake lithium project in Utah

Lilac Solutions and Traxys sign a binding 10-year offtake for 100% of Phase 1 output at the Great Salt Lake lithium project in Utah, totaling 50,000 tonnes.

Lilac Solutions and Traxys have signed a binding 10-year offtake agreement covering lithium carbonate production from Lilac’s Great Salt Lake project in Utah, United States—a milestone the companies say strengthens the project’s path toward final investment decision (FID) and construction.

Under the definitive terms, Traxys will purchase 50,000 tonnes of lithium carbonate over 10 years, representing 100% of the planned Phase 1 production capacity. The agreement is structured as take-or-pay, with pricing mechanisms linked to market indices.

Phase 1 Secures 100% Sales for 5,000 tpa Plant

The Phase 1 facility is designed to produce 5,000 tonnes per year of lithium carbonate. Lilac said securing full commercialization for the initial phase provides a clear route to market and supports the near-term expansion of U.S. domestic lithium supply.

“With FEL-3 engineering completed and regulatory permits in progress, securing the offtake for 100% of planned production brings us closer to building an important new U.S. lithium source,” said Raef Sully, CEO of Lilac Solutions.

DLE and Ultra-Low-Grade Brines: 87% Recovery Reported in 2025 Pilots

The Great Salt Lake project processes ultra-low-grade brines (69 mg/L lithium) using Lilac’s fifth-generation ion-exchange technology within a direct lithium extraction (DLE) approach. The company reported achieving 87% lithium recovery during on-site pilot operations completed in 2025.

Lilac emphasizes that the process is non-consumptive, returning lithium-depleted brine to the lake and not reducing water levels, while also generating local employment, tax revenues, and royalties aimed at supporting lake preservation efforts. The ion-exchange media will be manufactured at Lilac’s facility in Fernley, Nevada.

Traxys Highlights U.S. Supply Chain Focus

Traxys framed the agreement as aligned with a shared objective of supporting a more resilient U.S. lithium supply chain.

“Traxys is pleased to enter into this 10-year offtake with Lilac to advance our shared vision for a strong lithium supply chain in the United States,” said Martim Facada, Managing Director, Lithium Trading at Traxys. He added that Lilac’s technology and sector experience, combined with Traxys’ global reach and supply-chain financing expertise, will help bring Lilac’s lithium carbonate to market for the lithium-ion battery industry.

Regional Implications: Chile Operations and South America Expansion Message

Lilac also highlighted the relevance of the Utah project to its broader footprint, including operations in Chile. Felipe de Mussy, Lilac Solutions’ President for South America, said the milestone validates the company’s extraction technology and underscores the importance of accelerating new projects—particularly in South America’s “Lithium Triangle.”

Upside: Phase 2 Targets 20,000 tpa LCE

Beyond Phase 1, Lilac outlined potential expansion via Phase 2, which would increase total capacity from 5,000 to 20,000 tonnes per year of LCE, positioning the Great Salt Lake development as one of the most significant near-term opportunities to expand domestic lithium supply in the U.S.

Lilac said it is continuing to work with state regulators to finalize the permits required for construction and operation.