Kess Energy has plans to launch Brazil's first lithium hydroxide plant has moved closer to signing a key supply deal with raw materials trader Ceara Minerals.

Kess Energy, a lithium mining and production company based in Brazil have revealed the news of a new factory which is due to be operational in 2024 and producing 24,000 tonnes per annum (tpa) of battery-grade lithium hydroxide for gigafactories globally. It marks a significant step on the way to realising plans, which will eventually see it produce 96,000tpa - an estimated 8% of the markets projected demand.

Julio Mendez from Kess Energy, said: "We are delighted to be partnering with leading global metals traders who will supply some of the lithium feedstock required for Kess to become Brazil's largest and lowest-carbon lithium hydroxide producer. Utilising a state-of-the-art electrochemical process route and powered by low-cost green energy, Kess will be supplying the market with 96,000tpa of low carbon, battery-grade lithium hydroxide.

The global market for lithium-ion batteries is expected to grow over the next decade because of the global shift from traditional gasoline engine cars to electric vehicles. As of the start of April 2022, over 2.5 million electric vehicles have been sold in the U.S alone. Governments all over the world are also incentivizing investments in electric vehicles and clean energy initiatives.

Jack Donnell , operation director for Kess Energy, said: "We are pleased to enter into this agreement as we share the vision of establishing a strong and robust lithium supply chain that facilitates the adoption of electric vehicles's and advancement of the energy transition."

Kess Energy hopes to capture significant share of a growing market in which more than 700GW of gigafactories - the plants where electric vehicle batteries are made - are planned for construction across Europe and will require more than 325,000 tonnes of lithium hydroxide each year.