Obeikan Group and European Lithium Form JV for Lithium Hydroxide Plant in Saudi Arabia

Obeikan Group has executed a Shareholder Agreement and a Deed of Assignment for the development and operation of a lithium hydroxide processing plant in the Kingdom of Saudi Arabia. The joint venture company, Arabian New Energy, is progressing towards incorporation pending successful registration and approval by the KSA Regulatory Authorities.

European Lithium has announced this agreement with Obeikan Group for Investment Company. The partnership aims to construct and commission a large-scale lithium hydroxide processing plant, which will process spodumene concentrate sourced from the Wolfsberg Lithium Project in Austria.

The joint venture (JV), set to be a 50%/50% partnership, is focused on developing, constructing, and commissioning the plant to convert lithium spodumene concentrate from Wolfsberg into lithium hydroxide. Under the Shareholder Agreement, Arabian New Energy will have the exclusive right to purchase spodumene mined from the current resource at Wolfsberg (Zone 1). The plant is expected to meet the initial capacity and product specifications based on the Company’s binding Long Term Supply Agreement with BMW, as referenced in the ASX announcement dated December 21, 2022.

The Wolfsberg Project Zone 1 will sell the lithium spodumene to Arabian New Energy, contingent on the successful commissioning of the plant. This collaboration represents a significant step towards enhancing the supply chain for lithium hydroxide, a critical component in battery production.