Salt Lake's Hidden Lithium Could Power the EV Era

Lilac Solutions and Traxys finalize a 10-year, 50,000-tonne offtake deal to advance US domestic lithium production from Utah

31 Jan 2026

A Utah-based lithium project took a significant step toward production in January when Lilac Solutions and commodity trader Traxys signed a binding 10-year offtake agreement, establishing a rare commercial anchor for a US critical minerals project still in development.

Under the take-or-pay contract, Traxys will purchase 50,000 tonnes of battery-grade lithium carbonate over the decade, absorbing the full planned output from Phase 1 of Lilac's facility at the Great Salt Lake. Annual volumes are set at 5,000 tonnes, with pricing tied to market indices. The structure gives Lilac the revenue certainty needed to progress toward a Final Investment Decision, with construction targeted for mid-2026.

The project relies on Lilac's fifth-generation ion exchange technology, which recovered 87% of lithium from brine containing just 69 milligrams of lithium per litre during 2025 pilot trials. That figure matters. Most conventional extraction methods struggle commercially at such low concentrations, making the result a meaningful test of the technology's viability at scale.

Phase 1 output, once online, is projected to nearly double current US lithium carbonate production. A second phase would expand site capacity to 20,000 tonnes per year.

The deal reflects a broader pattern in how companies are responding to supply chain pressure. Rather than waiting for permitting clarity or a lithium price recovery before seeking market access, developers are using long-term offtake structures to secure project financing and accelerate timelines. Traxys committing to the full Phase 1 volume signals confidence in both the technology and the commercial case for US supply.

Battery-grade lithium carbonate production in the United States has long fallen well short of domestic demand. Whether this agreement becomes a financing template for other projects advancing toward investment decisions this year will depend on how quickly the Utah site moves through permitting and whether lithium prices stabilise sufficiently to attract further capital.

Those questions remain open. For now, the Lilac-Traxys agreement represents one of the more concrete steps the US critical minerals sector has taken toward reducing dependence on foreign supply.