Swiss mining giant Glencore is jumping into lithium, signing an offtake agreement with Galan Lithium Limited (ASX: GLN) for lithium chloride concentrate.

Galan announced the deal today to the ASX saying the board had signed off on a binding term sheet with a wholly owned subsidy of Glencore plc for up to 100% of its lithium project in Argentina.

The deal sees the multi-national jumping into the lithium mining space for the first time.

The deal covers Galan’s Hombre Muerto West project in South America, which will see Glencore offer financing for up to US$100 million.

Earlier this year Glencore announced it would get involved in battery metals recycling operations in Europe.

However, this is the first time the company has undertaken such a deal for raw lithium from mining opeartions.

Shares in Galan Lithium ripped higher at hte open on Thursday in Sydney, up nearly 20%.