QPM will deliver a combined 10,000 tonnes per annum of contained nickel and 1000tpa contained cobalt to LG Energy Solution and POSCO once its TECH plant fires up from 2023.
LG will take the lion's share of the production, initially as 7700tpa of mixed hydroxide precipitate.
Within a year of operations QPM expects to secure commercial production certification and will switch to supplying nickel and cobalt sulphate.
The contracts cover the first seven years of production, with first right of refusal on the quantity for three years after the term ends.
The offtake agreements are conditional on TECH achieving commercial production, and shareholder approval of a proposed equity raising that will see LG secure 7.5% and POSCO 3.2% in QPM.
The pair intends to fund a US$15 million placement at A13.6c per share, a 17% premium to trading over the past month.
QPM said the pair were "credible and bankable counterparties" who had completed extensive due diligence on TECH and the direct nickel process, and would assist QPM in securing project finance.
LG said its investment in QPM was the most meaningful investment in its supply chain since it was spun out of parent LG Chem.
Hatch is helping run the definitive feasibility study.
QPM intends to secure nickel laterite ore from New Caledonia for treatment in its proposed plant.
While the exact size of the plant will be determined by the DFS, the company is looking to produce up to 1500tpa of cobalt sulphate and 16,000tpa of nickel product, plus 4000tpa of 99.99% high purity alumina.
QPM raised A$20 million last quarter via a placement and share purchase plan at 8c in March to fund completion of the TECH DFS, and in September 2020 it raised $4.4 million at 1.5c.
QPM shares, which have traded as low as 1.2c over the past year hit a 12-month peak of 18.5c today, and were still up 10% at 16c at the time of writing.
The company is capitalised at about $172 million.