Glencore to Market 25,000 Tons of Geothermal Lithium from T5 Smackover in Texas
T5 Smackover Partners has signed a binding offtake agreement with Glencore to market 25,000 tons of lithium carbonate from its East Texas Smackover Formation project.
T5 Smackover Partners, a subsidiary of Texas-based T5 Holdings LP, has signed a binding offtake agreement with Glencore Ltd. for the marketing of lithium carbonate from its combined geothermal and critical minerals project in the East Texas Smackover Formation. Under the terms of the agreement, Glencore will market 100% of T5's Phase 1 production, estimated at approximately 5,000 metric tons per year over five years, totaling approximately 25,000 tons. Deliveries will begin at first commercial production.
A deposit with some of the highest lithium concentrations globally
The project covers Franklin, Titus, and Hopkins Counties in East Texas. Originally permitted as a geothermal well, T5 states that its preliminary development has exceeded temperature expectations. The company reports identifying multiple zones within the Smackover Formation containing some of the highest lithium concentrations recorded globally, at approximately 800 parts per million (ppm) versus a global average of 100 ppm.
Based on current development plans, T5 expects annual production of 35,000 to 50,000 tons of lithium carbonate equivalent (LCE) from its Franklin, Titus, and Hopkins Counties project. The agreement with Glencore covers Phase 1 of the project, representing approximately 5,000 metric tons per year over a five-year term. The project combines two value streams on a single site: geothermal power generation and lithium extraction from brine, in a region already equipped with oil and gas infrastructure.
Glencore deepens its North American critical minerals partnerships
Bruce Thompson, CEO and Founder of T5, stated in a press release that the partnership with Glencore would accelerate time to market by leveraging the group's global lithium presence. He also cited the redistribution of revenues to East Texas landowners as a priority for the project. The offtake agreement provides T5 with commercial visibility on its Phase 1 ahead of the start of actual production.
Robin Francois, Head of Lithium at Glencore, indicated that the agreement deepens the group's North American critical minerals partnerships. He stated that T5's project would be positioned to deliver a reliable, domestically produced source of battery-grade lithium carbonate to customers across North America and globally. The start of deliveries remains contingent on T5 reaching first commercial production.
Source: energynews.pro
