Liontown secures supply deal with China’s BSIT
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The news: Lithium miner Liontown Resources has signed a short term supply deal with Beijing Sinomine International Trade.
The numbers: Under the agreement, Liontown will supply 100,000 dry metric tonnes of spodumene concentrate from its Kathleen Valley project over a 10-month period starting 30 September. The price will be with reference to market prices for battery grade lithium carbonate.
Liontown shares were trading 0.5% lower at 99.5 cents in early trading on the ASX.
The context: The latest supply deal adds to a spate of recent offtake agreements entered into by Liontown, which counts billionaire Gina Rinehart as a key shareholder, as the company ramps up production at the new Kathleen Valley mine in Western Australia, one of the world’s biggest lithium projects.
Earlier this month, Liontown secured a 10-year offtake extension as well as a USD250 million ($369.5 million) investment from South Korean battery producer LG Energy Solution. It also holds long-term offtake contracts with Tesla and Ford, which will be progressively brought into effect over the next 12 months.
The source: ASX announcement
