Australia’s leading lithium miner Liontown & US headquartered electric vehicle pioneer Tesla have executed the definitive Offtake Agreement for the supply of spodumene concentrate from the Kathleen Valley Lithium Project in Western Australia, expending the detail on the material terms agreed in the binding terms sheet announced in February 2022. 5 year agreement specifies the operational & logistical requirements for the delivery of product expected to commence in 2024. Tesla would purchase 100,000 tonnes in the first year, increasing to 150,000 tonnes per year in subsequent years. Pricing is determined using a formula-based mechanism referencing market prices for battery-grade Lithium Hydroxide Monohydrate.The Offtake Agreement with Tesla is the second definitive agreement secured for Kathleen Valley following the foundational offtake agreement with LG Energy Solutions in May 2022.Together with the LG Energy Solutions agreement, this means that up to 60% of Liontown's planned production is now covered by long-term agreements with high-quality customers. The remaining production will be sold on spot or Liontown has an option to sell to existing customers.Liontown's Kathleen Valley project is one of the world’s largest and highest-grade hard rock lithium deposits and is expected to supply 500,000 tonnes of 6% lithium oxide concentrate per year when it comes on stream in 2024, with an initial mine life of 23 years. The Kathleen Valley deposit will also produce Tantalum Pentoxide, a valuable material used in electronics and optics manufacturing.
Australia’s leading lithium miner Liontown & US headquartered electric vehicle pioneer Tesla have executed the definitive Offtake Agreement for the supply of spodumene concentrate from the Kathleen Valley Lithium Project in Western Australia, expending the detail on the material terms agreed in the binding terms sheet announced in February 2022. 5 year agreement specifies the operational & logistical requirements for the delivery of product expected to commence in 2024. Tesla would purchase 100,000 tonnes in the first year, increasing to 150,000 tonnes per year in subsequent years. Pricing is determined using a formula-based mechanism referencing market prices for battery-grade Lithium Hydroxide Monohydrate.The Offtake Agreement with Tesla is the second definitive agreement secured for Kathleen Valley following the foundational offtake agreement with LG Energy Solutions in May 2022.Together with the LG Energy Solutions agreement, this means that up to 60% of Liontown's planned production is now covered by long-term agreements with high-quality customers. The remaining production will be sold on spot or Liontown has an option to sell to existing customers.Liontown's Kathleen Valley project is one of the world’s largest and highest-grade hard rock lithium deposits and is expected to supply 500,000 tonnes of 6% lithium oxide concentrate per year when it comes on stream in 2024, with an initial mine life of 23 years. The Kathleen Valley deposit will also produce Tantalum Pentoxide, a valuable material used in electronics and optics manufacturing.
