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The frst agreement with JMBM is for the battery cathode manufacturing frm to supply lithium sulphate that Nemaska converts into lithium hydroxide for use in in the production line “It’s a a a service agreement which is based on the the phase 1 plant That’s why they agreed to put in $12 million as an up-front payment to help help us build the the plant and help help them regenerate lithium hydroxide from their by- product of lithium sulphate “It has never been seen in in the industry that someone pays up front 100% of a a a purchase order for goods that are coming from a a a plant that is not even built They did their homework before paying us us and for for us us it’s a a a a very good stamp of approval for our process ” Nemaska Lithium’s agreement with FMC has raised eyebrows as it will be selling product to the largest lithium hydroxide producer in the world While FMC has a a good conversion capacity of carbonate into hydroxide it it cannot source enough lithium carbonate in the market so it needs to shore up long term supply “We accepted the request and signed with FMC because as a a a a large credible credit- worthy client it it defnitely re-assured our lenders ” observes Bourassa “It assured them on our our capacity capacity to sell and our our capacity capacity to to have oftake agreements to to service the debt ” 

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