- Battery minerals company Liontown Resources (LTR) completes negotiations for a lithium offtake deal with Elon Musk’s electric vehicle giant, Tesla
- Under the agreement, Liontown will supply Tesla with up to 150,000 dry metric tonnes per annum of spodumene concentrate from its Kathleen Valley lithium project in WA
- This offtake agreement is the second secured by Liontown following a foundational deal with LG Energy Solutions
- According to Liontown, this means that up to 60 per cent of its planned production is now covered by long-term agreements with high-quality customers
- Liontown shares are down 2.6 per cent to trade at $1.24 at 10:19 am AEST.
Battery minerals company Liontown Resources (LTR) has locked in and signed a lithium offtake deal with Elon Musk’s electric vehicle giant, Tesla.
Under the agreement, Liontown will supply Tesla with up to 150,000 dry metric tonnes per annum of spodumene concentrate from the Kathleen Valley lithium project in WA.
Liontown said it expected supply to commence in 2024, and the agreement was subject to the company commencing commercial production at Kathleen by no later than December 1, 2025.
“Tesla is a global leader and innovator in electric vehicles and having formalised arrangements for it to become a significant customer is a tremendous achievement,” LTR Managing Director and CEO Tony Ottaviano said.
“This means that we now have two of the premier companies in the global lithium-ion battery and EV space signed up as foundational customers, marking a significant step towards realising our ambition to become a globally significant provider of battery materials for the clean energy market.”
The Tesla offtake agreement is the second secured by Liontown following its foundational agreement with LG Energy Solutions.
According to Liontown, this means up to 60 per cent of its planned production is now covered by long-term agreements with high-quality customers.
The company said it continued to receive strong interest from a range of parties for the remaining third offtake which, once completed, would result in about 85 per cent of production from Kathleen Valley being contracted.
Liontown shares were down 2.6 per cent to trade at $1.24 at 10:19 am AEST.