(Reuters) - Battery materials developer Australian Mines Ltd <AUZ.AX> said on Tuesday it signed an off-take agreement to supply battery-grade cobalt and nickel sulphate to South Korea's SK Innovation <096770.KS>.
Under the terms of the deal, battery maker SK Innovation has agreed to purchase 100% of the battery-grade cobalt sulphate and nickel sulphate produced from Australian Mines' flagship Sconi Cobalt-Nickel-Scandium Project in North Queensland.
The miner said the agreement was for an initial seven-year period, which could be extended for up to a further six years if both parties agree.
The long-term off-take agreement comes after both companies had reached a preliminary agreement in March 2018.
Sales prices under the agreement are linked to the corresponding London Metal Exchange nickel price and Metal Bulletin cobalt price, Australian Mines said in the statement.
In May, the company's chief executive had said it hopes to lock in funds for a planned $935 million battery materials plant by the end of June, despite volatile prices that have crimped lending to the new energy sector. [nL5N21Y1IE]
(Reporting by Rashmi Ashok in Bengaluru, editing by G Crosse)
