Did BlackRock Sign a Contract for Lithium?

BlackRock, the world's largest asset manager, has signed a contract with Livent Corp. to secure long-term supplies of lithium, a key component in electric vehicle (EV) batteries.

The contract, which spans multiple years, will see Livent supply BlackRock with a significant portion of its lithium hydroxide production from its operations in the United States. This deal is a major step for both companies as the demand for lithium continues to soar due to the rapid adoption of EVs.

Why Lithium is Critical for BlackRock and the EV Industry

Lithium is a vital raw material used in the production of EV batteries. Due to the increasing demand for EVs, the lithium market is expected to grow at a compound annual growth rate (CAGR) of 38.7% until 2028.

As a long-term investor, BlackRock recognizes the importance of securing a stable supply of lithium to meet the growing needs of its clients. By signing this contract with Livent, BlackRock is ensuring that it will have access to the critical raw material for many years to come.

"We are excited to partner with Livent to secure a long-term supply of lithium," said Larry Fink, CEO of BlackRock. "This agreement supports our commitment to investing in the clean energy transition and providing our clients with access to the resources they need to achieve their sustainability goals."

Livent's Strategic Position in the Lithium Market

Livent is one of the largest producers of lithium in the world, with operations in the United States and Argentina. The company is strategically positioned to meet the growing demand for lithium as it has a proven track record of delivering high-quality lithium products to its customers.

"We are delighted to have entered into this long-term agreement with BlackRock, a leading global investor," said Paul Graves, CEO of Livent. "This agreement recognizes Livent's leadership in the lithium industry and our commitment to providing sustainable, high-quality lithium to the market."

Key Details of the Contract

The contract between BlackRock and Livent includes the following key details:

• Volume and duration: Livent will supply BlackRock with a significant portion of its lithium hydroxide production for multiple years.
• Pricing: The pricing structure is confidential, but it is based on market conditions and Livent's production costs.
• Delivery: Livent will deliver the lithium hydroxide to BlackRock's designated locations.
• Sustainability: Both parties are committed to sustainability and will work together to minimize the environmental impact of their operations.

Significance of the Contract for BlackRock and Livent

This contract is significant for both BlackRock and Livent as it:

• Secures BlackRock's long-term supply of lithium: BlackRock has secured a reliable source of lithium for many years, which will support its investments in the EV industry.
• Strengthens Livent's position as a leading lithium producer: Livent has secured a long-term offtake agreement with one of the world's largest asset managers, which will provide stability to its operations.
• Supports the growth of the EV industry: The contract will contribute to the growing demand for lithium and support the expansion of the EV industry.

Conclusion

The contract between BlackRock and Livent is a significant development in the lithium industry. It demonstrates the growing importance of lithium for the EV industry and the strategic importance of securing access to this critical raw material. This deal will enable BlackRock to meet the needs of its clients and contribute to the clean energy transition.