Lithium Energy Products Inc. said Jan. 24 that it has signed a memorandum of understanding to supply 500 tonnes per month of industrial grade lithium carbonate to Chinese battery manufacturer Shenzhen Optimum Nano Energy Co. Ltd.

Lithium Energy Chairman and President Basil Botha said, "[T]his buyer understands that we are early stage and that no production decision has been taken and may not be achieved for a few years" and that the company will boost efforts to sign off-take agreements with lithium companies that are close to production.

The purchase price will be based on prevailing market prices at the time the products are sold.

The terms are not comprehensive and may change as a binding agreement is negotiated over the coming months, the company noted.

In addition, Michael Hepworth resigned as Lithium Energy's vice president for corporate development, effective immediately.