Liontown Resources signs Binding Offtake Agreement with Ford; Shares up on ASX

Liontown Resources Limited (ASX: LTR) has signed binding Offtake Agreement and Funding Facility with Ford Motor Company. The deal with Ford is for the supply of up to 150,000 DMT annually of spodumene concentrate.  The spodumene concentrate will come from LTR’s 100%-owned Kathleen Valley Lithium Project in Western Australia for 5 years.

This agreement represents LTR’s third and final foundational offtake required to support the development of Kathleen Valley. Thus, marking the finale of the disciplined execution of its offtake strategy.

Supply to Ford is likely to start in 2024, with volumes of 75,000 DMT of spodumene concentrate in year one of operations. It will increase to 125,000 DMT in year two and 150,000 DMT for years three to five of the initial five-year term.

Under a separate Funding Facility, a Ford subsidiary will give a AU$300 million debt facility to Liontown. The proceeds will be used towards partly funding the development costs of Kathleen Valley.

At AEST 10:52 AM, LTR shares are trading at AU$1.195 , up 12.206% from the previous close.

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