PERTH (miningweekly.com) – Lithium developer Liontown Resources has reached an agreement with electric vehicle (EV) major Tesla to extend the termination date for its binding offtake term sheet until June 6.
The two companies in February inked an offtake term sheet under which Liontown would supply up to 150 000 t/y of spodumene concentrate, starting in 2024, representing one-third of Kathleen Valley’s start-up production capacity of 500 000 t/y.
The companies had been working to complete negotiations and execute detailed definitive agreements by the end of May.
The agreement with Tesla is the second offtake arrangement secured for Kathleen Valley following the foundational offtake arrangement with LG Energy Solutions. The two offtake agreements mean that more than half of Liontown’s planned production is now covered by long-term agreements with high-quality customers.