Nemaska Lithium Inc. (TSX:NMX) (OTC:NMKEF) and Northvolt AB are pleased to announce the signature of an agreement in principle providing for the supply by the Corporation to Northvolt of battery grade lithium hydroxide.

Under this agreement in principle, Nemaska Lithium agreed to supply, through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., and Northvolt agreed to purchase, on a take-or-pay basis, up to 5,000 but not less than 3,500 metric tonnes per year of lithium hydroxide produced at the Corporation’s commercial plant in Shawinigan, for a 5-year supply period commencing upon the start of commercial production at both the Shawinigan Plant and Northvolt’s projected Skellefteå factory in Sweden (the “N Factory”).

In connection with this supply of lithium hydroxide, Northvolt has agreed to deliver to the Corporation a EUR 10M promissory note which, at the Corporation’s option, can be converted into voting shares of Northvolt in connection with the N Factory funding, or redeemed at cost plus an agreed-upon interest rate.

“We are pleased with this first step in establishing a strategic partnership between Northvolt and Nemaska, as we both share the same vision and values of facilitating access to green energy for the benefit of humanity and pushing the boundaries to do so”, declared Guy Bourassa, President & Chief Executive Officer of Nemaska Lithium.

The supply of lithium hydroxide and the issue of the promissory note, as contemplated, are subject to the conclusion of a mutually satisfactory definitive supply agreement and to the prior approval of the board of directors of both parties.

About Nemaska Lithium

Nemaska Lithium is a developing chemical company whose activities will be vertically integrated, from spodumene mining to the commercialization of high-purity lithium hydroxide and lithium carbonate. These lithium salts are mainly destined for the fast-growing lithium-ion battery market, which is driven by the increasing demand for electric vehicles and energy storage worldwide. With its products and processes, Nemaska Lithium intends to facilitate access to green energy, for the benefit of humanity.

The Corporation will be operating the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade. The spodumene concentrate produced at the Whabouchi mine will be processed at the Shawinigan plant using a unique membrane electrolysis process for which the Corporation holds several patents.

About Northvolt

Northvolt was founded in 2016 with the mission to build the world’s greenest battery, with a minimal carbon footprint and the highest ambitions for recycling, to enable the European transition to renewable energy. Northvolt’s team of experts is building the next generation battery factory focused on process innovation, scale and vertical integration. Once completed, it will be Europe’s largest battery factory and will produce 32 GWh worth of battery capacity annually. For more information, please visit www.northvolt.com.