09:58 AM EDT, 04/27/2018 (MT Newswires) -- Nemaska Lithium Inc. (NMX.TO) and Northvolt AB have signed an agreement in principle for Nemaska to provide Northvolt battery grade lithium hydroxide.

Nemaska Lithium will supply, through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation Inc., between 3,500 to 5,000 metric tonnes per year of lithium hydroxide produced at Nemaska's commercial plant in Shawinigan. The agreement is for a 5-year supply period commencing upon the start of commercial production at both the Shawinigan Plant and Northvolt's projected Skelleftea factory in Sweden.

Northvolt has agreed to deliver a EUR10 million promissory note which, at Nemaska'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.

The supply of lithium hydroxide and the issue of the promissory note 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

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