Liontown Signs Lithium Spodumene Offtake Agreement with Ford

Liontown Resources has executed a binding Offtake Agreement and Funding Facility with leading global automaker Ford Motor Company. The Offtake Agreement with Ford is for the supply of up to 150,000 tonnes per annum of spodumene concentrate -a source of lithium essential in key EV battery chemistries. The spodumene concentrate will come from Liontown's flagship 100%-owned Kathleen Valley Lithium Project in Western Australia for five years. Supply to Ford is expected to commence in 2024, with volumes of 75,000 tonnes of spodumene concentrate in year one of operations, increasing to 125,000 tonnes in year two and 150,000 tonnes for years three to five of the initial five-year term. The commercial terms of the Offtake Agreement reflect the continued strength in demand for spodumene concentrate and were not subsidised by the Funding Facility.The agreement represents Liontown's third and final foundational offtake required to underpin the development of Kathleen Valley, marking the culmination of the disciplined execution of its offtake strategy. Together with the previously announced binding full-form offtake agreements with Tesla & LG Energy Solution, Liontown's total offtake commitments now stand at up to 450,000 tonnes per annum of spodumene concentrate, representing approximately 90% of Kathleen Valley's start-up production capacity of 500,000 tonnes per annum. The remaining production from Kathleen Valley is intended to be retained for spot volume sales and discrete offtake agreements.Under a separate Funding Facility, a Ford subsidiary will provide a AUSD 300 million debt facility to Liontown, with the proceeds to be used towards partially funding the development costs of Kathleen Valley. The Funding Facility, together with the AUD 463 million raised by Liontown in December 2021, means that Liontown has now secured commitments for the required funds to support the full development of the Project through to first production.Kathleen Valley is a new, globally significant, lithium development project located 680km north-east of Perth in Western Australia's premier mining district. Underpinned by a world-class lithium deposit with a Mineral Resource Estimate of 156 million tonnes at 1.4% U2O and 130ppm TaiOs