Lilac & Traxys: US Lithium Production to Boost Manufacturing

Electricity demand is growing faster than overall energy demand as electrification is growing around the world, according to the International Energy Agency.

These changes are altering supply chains, particularly in electric vehicle (EV) manufacturing, mining and procurement.

Lilac Solutions and Traxys North America have formalised a binding 10-year offtake agreement for lithium carbonate produced at Lilac's Great Salt Lake facility in Utah, US.

This could help to de-risk domestic lithium production in the country and establish a clear procurement pathway for this significant critical mineral used in rechargeable batteries.

Under the terms, Traxys will purchase 50,000 tonnes of lithium carbonate over a decade.

By securing a long-term buyer, Lilac Solutions can focus on the technical execution of the project without the immediate pressure of market volatility.

Securing domestic mineral supplies

Lilac Solutions specialises in Direct Lithium Extraction (DLE), using proprietary Gen 5 ion exchange technology.

This provides a more efficient alternative to conventional extraction methods, supporting the speed and reliability of the supply chain.

During 2025 pilot operations, the technology achieved an 87% recovery rate.

Traditional evaporation ponds can take 24 months to produce results, whereas the DLE process functions within hours. The process is non-consumptive, meaning lithium-depleted brine is returned to the lake.

Traxys' 50,000 tonne purchase covers 100% of the planned Phase 1 production capacity.

The agreement is a take-or-pay structure with pricing tied to market indices.

For Lilac Solutions, the deal provides the financial stability required to move toward a Final Investment Decision.

For Traxys, it secures a long-term supply of battery-grade material in a volatile market.

Improving regional manufacturing loops

The Great Salt Lake Phase 1 facility aims to produce 5,000 tonnes per annum of battery-grade lithium carbonate.

This facility alone could nearly double current production in the US, helping organisations diversify their supplier base.

A planned Phase 2 expansion is intended to bring total capacity to 20,000 tonnes per annum.

At that scale, the project could produce nearly four times the current domestic output, reducing the need for international imports.

"Securing offtake for 100% of planned output moves us closer to construction of a significant new source of domestic lithium," Raef Sully, CEO of Lilac Solutions, says in a statement.

Meeting regulatory sourcing standards

In the US and European markets, tax credits and subsidies are frequently linked to the provenance of minerals.

Domestic sourcing is becoming a compliance requirement as well as a supply chain strategy.

Producing lithium within the US could help manufacturers meet these standards while lowering transportation costs.

The 10-year agreement structure provides a buffer against spot market volatility, allowing for improved financial planning.

Lilac Solutions has completed FEL-3 engineering and is working with state regulators in Utah to finalise construction permits.

The ion exchange media will be produced at a separate facility in Fernley, Nevada.