Saturday, May 31, 2025

Latest
Nemaska Lithium

Nemaska – Second Brutal News Release within One Week

Tonight Nemaska Lithium (TSXV: NMX, NMX.W, OTCMKTS: NMKEF) announced they have terminated their multi-year supply agreement with Livent Corporation (an FMC Corporation spinout). This Supply Agreement was for up to 8,000 tonnes per year (28,000 tonnes in total during the term of the contract) of lithium carbonate starting April 1, 2019.

In the company’s annual statements, reported in late September, Nemaska made the following warning in the subsequent event section:

To summarize what happened. Nemaska agreed to begin supplying FMC/Livent with lithium carbonate this spring. Due to project delays and cost overruns, Nesmaska is now unable to begin supplying the carbonate as promised.

The companies were working towards amending the supply agreement, however tonights news is an indication that FMC/Livent are wiping their hands clean of Nemaska. As a result, Nemaska will have to reimburse FMC/Livent the $10M payment pay made to Nemaska in April 2017, and pay a breakage fee of the same amount. Resulting in Nemaska forfeiting $20M of badly needed cash.

This is another brutal news event hitting the Canadian Lithium industry and specifically Nemaska in one week. Following the previous announcement where Nemaska announced project cost overruns of $375M.


Information for this briefing was found via Nemaska Lithium. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Nemaska Lithium Seeks Creditor Protection

Nemaska Lithium (TSX: NMX) has officially filed for creditor protection following a prolonged period of...

Monday, December 23, 2019, 08:13:40 AM

Quebec-based Nemaska Lithium Enters Into 11-Year Supply Agreement With Ford

A Quebec firm developing a lithium mine and production plan has agreed to supply materials...

Tuesday, May 23, 2023, 12:07:00 PM

Nemaska Lithium Secures $600 Million Equity Investment Proposal

Nemaska Lithium (TSX: NMX) announced this morning that it had finally made progress on securing...

Friday, July 19, 2019, 11:26:01 AM

Nemaska Facility Shutdowns To Be Completed By Years End

Nemaska Lithium (TSX: NMX) announced this morning that shutdowns will be completed shortly at its...

Friday, November 15, 2019, 10:49:13 AM

Pallinghurst Group and Traxys Join Forces in $2 Billion Ethical Battery Material Fund

It was announced earlier today that Pallinghurst Group will be forming a joint venture with...

Tuesday, November 12, 2019, 10:28:25 PM