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Highlights:

  • AGY signs contract to sell 60 tonnes of lithium carbonate from Rincon Project.
  • The company pegs pricing to SMM lithium benchmark, delivery via Buenos Aires FOB.
  • AGY shares rise 33.33% to AUD 0.020 following announcement of first spot sales contract.

Argosy Minerals Limited (ASX: AGY) has entered into a spot sales agreement with a Hong Kong-based chemical firm for the sale of 60 metric tonnes of battery-grade lithium carbonate. The product, with purity exceeding 99.5%, is sourced from Argosy’s Rincon Lithium Project located in the Salta Province of Argentina.

The company noted that the price for the contract was benchmarked to the SMM (Shanghai Metals Market) battery-grade lithium carbonate index. Delivery terms for the transaction are Free on Board (FOB) at Buenos Aires port, with payment structured to include a 30% deposit upfront and the remaining 70% required prior to shipment loading.

This sale marks a commercial step for Argosy’s Rincon project, which the company describes as its flagship development. The Rincon Lithium Project currently sits at 77.5% ownership by Argosy, with plans to move to 90% ownership in the near future. The project is situated in the Lithium Triangle, a geologically significant region that includes portions of Argentina, Bolivia, and Chile—home to some of the largest known lithium reserves globally.

Alongside its Rincon asset, Argosy also holds 100% ownership of the Tonopah Lithium Project in Nevada, USA. The company’s strategy is focused on progressing lithium carbonate equivalent (LCE) production through what it terms a fast-tracked development process, aiming to build a sustainable production base to serve battery-grade lithium markets.

The recent sale involved the company preparing and packaging the cargo for delivery to port, and the company confirmed there were no material conditions to be met before execution of the deal. No additional disclosures were deemed necessary by Argosy in relation to the contract.

Managing Director Jerko Zuvela commented on the significance of the transaction, noting industry interest in their product and referencing progress made at the Rincon site. He stated that the company views the ability to supply battery-quality lithium carbonate as a noteworthy development, given the technical and logistical hurdles involved in reaching that specification.

The lithium sector has seen fluctuating market dynamics in recent months, with pricing and demand influenced by trends in electric vehicle (EV) adoption, global battery supply chains, and inventory adjustments. Spot sales such as the one announced by Argosy are increasingly monitored as indicators of market sentiment and price transparency in the lithium market.

Following the announcement, Argosy shares were up 33.33%, trading at AUD 0.020 per share as of 27 June 2025.

The company maintains its focus on scaling up operations at Rincon, and further sales or offtake agreements may be anticipated as product quality and production consistency continue to be validated through shipments.