11 December 2025 – Perth, Australia | Prairie Lithium Limited (ASX:PL9, OTC:PLIXF) (“Prairie Lithium”, “PL9” or “the Company”), a company focused on the sustainable development of the Prairie Lithium Project (“Prairie”), has today announced that it has signed an offtake heads of agreement with Hydro Lithium (“Hydro”) to purchase 100% of the lithium-bearing crystallite produced at the Company’s Phase 1 commercial-scale proof-of-concept plant (up to 150 tonnes per annum Lithium Carbonate Equivalent (LCE)) for a 10-year term.
Under the agreement, Prairie Lithium will supply lithium-bearing crystallite from its Prairie Lithium project in Saskatchewan, Canada, for use as feedstock at Hydro Lithium’s operating lithium refinery in South Korea, where Hydro produces and sells battery grade lithium carbonate and battery grade lithium hydroxide.
The Company will also attempt to seek to increase supply of lithium-bearing crystallite to Hydro Lithium to a quantity necessary to produce up to 10,000 tonnes per annum LCE, supporting a pathway to scaled operations as Prairie progresses its development plans.
Prairie Lithium Managing Director, Paul Lloyd, commented: “This binding offtake with Hydro Lithium represents how we will sell our initial production and generate revenue from early operations. This is very similar to a spodumene concentrate transaction, a de-risked supply chain that allows resource companies to simplify operations and reduce capex by focusing on producing an intermediate product that can be brought to market quickly. We look forward to building on this relationship and these supply chains over the coming years.”
Saskatchewan Minister of Trade and Export, Warren Kaeding, commented: “We are extremely excited to see Prairie Lithium opening new markets, for new Saskatchewan resources. The supply chains and trade partners being established are critical to monetizing our vast resource wealth in the province, and we are committed to helping Prairie Lithium grow relationships in South Korea and around the world. We look forward to supplying the world with Made-In-Saskatchewan lithium that will power the future"
Hydro Lithium CEO, Dr. Uong Chon, commented: “We are very happy to be partnering with Prairie Lithium to create this valuable partnership between lithium resources in Canada, and battery grade refining operations in South Korea. Our revolutionary lithium refining technology allows resource companies to keep capex and opex low, while still maintaining exposure to the upside potential of battery grade lithium prices. We look forward to accepting their product as feedstock to make battery grade lithium chemicals at our refinery. We are very excited to work and grow this partnership.”
Prairie Lithium’s ASX announcement said that selling an intermediate lithium-bearing crystallite product closely mirrors a spodumene concentrate model, enabling early market entry while materially reducing capital costs and operational complexity associated with full battery grade conversion. This strategy is intended to support organic growth by establishing production and revenue, while maintaining exposure to battery-grade lithium pricing.
Pricing for the lithium-bearing crystallite will be determined by a formula linked to battery grade lithium carbonate. The formula is based on lithium weight percentage, conversion cost, and conversion efficiency, and is designed to enable both parties to maintain attractive margins in the current price environment while participating in lithium spot price upside.
To read the terms of the agreement and further detail, please see the Company's ASX announcement released 11 December 2025.
About us:
About the Prairie Lithium Project
PL9’s Prairie Lithium Project in Saskatchewan, Canada, is in one of the world’s top mining friendly jurisdictions. The project has easy access to key infrastructure including electricity, natural gas, fresh water, paved highways and railroads. The project also aims to have strong environmental credentials, with Prairie Lithium targeting to use less freshwater, land and waste, aligning with the Company’s sustainable approach to lithium development.
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
[email protected]
