- Liontown Resources (LTR) executes a binding offtake agreement and funding facility with global automaker, Ford
- With a term of five years, the agreement will see the supply of 150,0000 dry metric tonnes (DMT) of spodumene concentrate from LTR’s Kathleen Valley lithium project in WA
- In other news, Liontown secures a funding facility for $300 million with a Ford subsidiary, giving it the necessary funds to develop the project to first production
- Meanwhile, the board reaches a final investment decision, giving the green light for development of the project to proceed
- LTR shares are up 7.98 per cent and trading at $1.15 each at 10:49 am AEST
Liontown Resources (LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The agreement will last for five years and will see the supply of spodumene concentrate from Liontown’s Kathleen Valley lithium project in Western Australia.
Supply is expected to start in 2024 with volume to ramp up over the first three years of production to supply Ford with 150,000 dry metric tonnes (DMT) per year of spodumene concentrate.
This is the third offtake agreement and brings its total offtake commitments to 450,000 DMT of spodumene concentrate.
Managing Director and CEO Tony Ottaviano said this represents 90 per cent of its start-up capacity.
“Our disciplined approach to our offtake strategy has enabled us to build a customer base of Tier-1, globally significant customers in the EV battery supply chain, validating Kathleen Valley’s status as a globally relevant lithium asset,” he said.
In addition, Liontown secured a funding facility for $300 million with a Ford subsidiary.
This adds to the $463 million raised in December and gives LTR the required funds to support the full development of the project to first production.
With the necessary funding in hand, the board reached a final investment decision (FID) and gave the green light for the development of the project
It is working to secure contracts for construction.
The company optimised front-end engineering design (FEED) activities, resulting in an increase in the expected pre-production capital cost estimate to $545 million.
However, the company said the adjustment will allow for more flexibility and reduce operating costs over the life of the project.
LTR shares were up 7.98 per cent and trading at $1.15 per share at 10:49 am AEST.