- Liontown Resources (LTR) executes a binding offtake agreement with electric vehicle battery manufacturer LG Energy Solutions
- The agreement is to supply LG with spodumene concentrate from Liontown’s Kathleen Valley lithium project in WA over five years, starting in 2024
- Initially, LGES will purchase 100,000 dry metric tonnes in the first year, increasing to 150,000 per year after that – representing one third of the project’s start-up production capacity
- After the initial five years, there will be the ability to extend the agreement for a further five years
- LTR shares are down 2.39 per cent, trading at $1.43 each
Liontown Resources (LTR) has executed a binding offtake agreement with electric vehicle battery manufacturer LG Energy Solutions, for the supply of spodumene concentrate from Liontown’s Kathleen Valley lithium project in WA.
The agreement is for an initial five year term, starting in 2024, with LG set to purchase 100,000 dry metric tonnes (DMT) of spodumene concentrate in the first year, increasing to 150,000 DMT per year after that.
This represents approximately one-third of the project’s start-up production capacity of 500 kilo tonnes per annum of SC6.0.
Following the initial five years, there will be the ability to extend the agreement for an additional five years with LG Energy – which is currently growing as a major EV battery supplier for leading global automakers.
This latest agreement follows Liontown’s signing of an offtake term sheet in February, with electric vehicle manufacturer, Tesla, also for the supply of up to 150,000 DMT of lithium spodumene from Kathleen Valley.
Once long form documentation with Tesla is signed, more than half of Liontown’s planned production will be covered.
Liontown’s Managing Director and CEO Tony Ottaviano said the company is “delighted” to have entered into the company’s first full form offtake agreement for the project.
“This establishes the foundation for a longterm partnership and we are proud that we will be supplying lithium from the Kathleen Valley Project to LG, a respected global leader in the lithium battery value chain,” he said.
LTR shares were down 2.39 per cent, trading at $1.43 at 11:01 am AEDT.