Liontown and Tesla make offtake official
Australia’s Liontown and electric vehicle (EV) manufacturer Tesla have executed a full-form agreement for the supply of spodumene concentrate from the Kathleen Valley lithium project, in Western Australia.
The full-form agreement expands the detail on the material terms agreed in the binding term sheet announced in February and specifies the operational and logistical requirements for the delivery of product.
Tesla will buy 100 000 dry metric tonnes (DMT) of spodumene concentrate, representing about one third of the project’s start up capacity of 500 000 t/y, in the first year, increasing to 150 000 DMT a year in subsequent years.
The agreement is conditional upon Liontown starting commercial production at Kathleen Valley by not later than December 1, 2025.
The offtake is Tesla’s second definitive agreement secured for Kathleen Valley, following the foundational offtake agreement with LG Energy Solutions. Together, these agreements account for up to 60% of Liontown’s planned production.
Liontown reports that it has received strong interest from a range of parties for the remaining third offtake, which once completed, will result in about 85% of the production from Kathleen Valley contracted.
The remaining production will be sold on spot or to existing customers.
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