Century Lithium Corp. (TSXV: LCE, OTCQX: CYDVF, FRA: C1Z) has recently entered into a non-binding memorandum of understanding (MOU) with Orica Specialty Mining Chemicals, marking a significant step in the development of its Angel Island project located in Nevada. This agreement, signed on January 16, 2025, outlines the intent for a multiyear offtake arrangement whereby Orica will purchase sodium hydroxide (NaOH) produced as a byproduct of Century Lithium’s lithium extraction process.
The MOU represents a pivotal moment for the Angel Island project, which is poised to become one of the largest sedimentary lithium deposits in the United States. Century Lithium’s President and CEO, Bill Willoughby, emphasized the importance of this collaboration, noting that it is expected to involve a substantial portion of the surplus sodium hydroxide anticipated during the project’s initial operational years. This partnership not only enhances Century Lithium’s operational framework but also positions Orica as a key player in supporting local supply chains within the mining sector.
Orica, recognized as a leading provider of mining and infrastructure solutions globally, aims to leverage this agreement to bolster Nevada’s manufacturing and mining industries. Andrew Stewart, President of Specialty Mining Chemicals at Orica, highlighted that securing a reliable source of sodium hydroxide from Angel Island will strengthen the local supply chain and reduce reliance on imports. This is particularly relevant as demand for sodium hydroxide continues to rise in various industrial applications.
The MOU outlines an initial five-year term for the supply agreement, with an option for an additional five years. Specific pricing terms will be established in a definitive agreement to follow. This long-term arrangement not only provides Century Lithium with revenue visibility but also reinforces its commitment to maintaining low operating costs through the sale of surplus sodium hydroxide.
At the heart of this collaboration is Century Lithium’s innovative extraction process for lithium from claystone at Angel Island. The company employs a patent-pending method that combines chloride leaching with direct lithium extraction. This process utilizes salt, either in solid form or as saline brine, to produce necessary reagents for leaching and pH control. The result is not only high-purity lithium carbonate but also surplus sodium hydroxide, which is expected to be a significant contributor to the project’s overall economic viability.
As the electric vehicle and battery storage markets continue to expand, the demand for lithium and its derivatives is projected to increase significantly. By establishing this partnership with Orica, Century Lithium is strategically positioning itself to meet this growing demand while simultaneously enhancing local manufacturing capabilities within Nevada.
The collaboration between these two companies highlights a broader trend within the mining industry, an increasing focus on sustainability and local sourcing. As companies like Orica commit to innovative solutions that support U.S. manufacturing, they contribute to strengthening domestic supply chains and reducing environmental impacts associated with long-distance transportation of chemicals. The signing of this MOU between Century Lithium and Orica Specialty Mining Chemicals marks a promising development for both companies and the broader mining sector in Nevada.
