Liontown Resources Announces Spodumene Concentrate Supply Deal with Beijing Sinomine
Liontown Resources Announces Spodumene Concentrate Supply Deal with Beijing Sinomine

Liontown Resources Announces Spodumene Concentrate Supply Deal with Beijing Sinomine

  • 15-Jul-2024 5:20 PM
  • Journalist: Bob Duffler

Liontown has secured a short-term 10-month offtake agreement with Beijing Sinomine International Trade Co., Ltd. (BSIT) for the purchase of ramp-up volumes. Under the definitive binding full-form offtake agreement, Liontown will supply up to 100,000 dry metric tonnes (DMT) to BSIT. The supply is set to commence by 30 September 2024. This agreement helps de-risk the initial sales phase during Liontown’s plant ramp-up, ensuring a stable market for their lithium production as they progress towards full operational capacity and long-term offtake commitments.

Pricing for the Liontown and BSIT offtake agreement is determined using a formula-based mechanism that references market prices for battery-grade lithium carbonate. BSIT, a well-known company in the lithium chemicals industry, is actively involved in hardrock lithium mining and the refining of spodumene concentrates into battery-grade lithium chemicals. This agreement ensures that the pricing remains competitive and aligned with market standards, reflecting BSIT's significant expertise and presence in the industry. The partnership leverages BSIT's established operations to support Liontown's market entry and production ramp-up.

In a significant development for Liontown Resources, the company has secured a definitive offtake agreement with BSIT for spodumene concentrate produced at its Kathleen Valley Lithium Project in Western Australia. This comprehensive Offtake Agreement signifies the successful culmination of negotiations between the two parties. The agreement strengthens Liontown's position by guaranteeing the offtake of spodumene concentrate, a critical lithium raw material, which is essential for their future production plans. This strategic move positions Liontown to capitalize on the growing demand for lithium in the battery and electric vehicle markets.

The short-term Offtake Agreement stipulates the delivery of spodumene concentrate over a 10-month period, starting by 30 September 2024. This agreement with BSIT complements Liontown’s existing long-term offtake contracts with Tesla, LG Energy Solution, and Ford, which will be progressively implemented as Kathleen Valley ramps up to full production over the next year. Anglo Pacific Holdings Pty Ltd. served as the advisor to the buyer in this transaction.

Tony Ottaviano, Managing Director and CEO of Liontown, emphasized that securing a near-term offtake agreement with an established lithium refiner mitigates sales risks during the initial ramp-up phase of their plant towards full capacity. He highlighted that this agreement complements their existing long-term offtake agreements, which will be progressively implemented over the next 12 months as production scales up to meet these commitments. Ottaviano noted that this strategic move ensures a stable market for their initial production volumes, supporting their goal of achieving nameplate capacity and fulfilling their offtake obligations.

Related News

Volkswagen Acquires 9 9 Stake in Lithium Developer Patriot Battery Metals for C 69
  • 19-Dec-2024 3:00 AM
  • Journalist: Jacob Kutchner
Astute Reports Groundbreaking 98 Lithium Leachability at Red Mountain
  • 09-Dec-2024 3:30 PM
  • Journalist: Francis Stokes
POSCO Future M Signs Major Deal for 20000 Tons of Lithium Hydroxide Boosting EV
  • 09-Dec-2024 12:15 PM
  • Journalist: Robert Hume
Lithium Universe Ltd Partners with Quebec Chemical Logistics Company
  • 05-Dec-2024 4:30 AM
  • Journalist: Yage Kwon