Liontown Resources (LTR) has announced an amendment to its offtake agreement with Ford Motor Company, involving a reduction in the quantity of lithium spodumene concentrate to be supplied from its Kathleen Valley project in Western Australia. The revised agreement reflects updated expectations for the project’s output and Ford’s evolving battery material needs. Liontown Resources is an Australian lithium mining company focused on developing the Kathleen Valley Lithium Project. They aim to be a significant provider of battery materials for the global electric vehicle market.
In conjunction with the adjusted supply terms, Liontown has also modified the terms of its loan facility with Ford. The amendment allows Liontown to defer principal repayments on the loan for a period of 12 months, providing the company with enhanced financial flexibility as it progresses the Kathleen Valley project towards production. This deferral is designed to better align with the project’s revised timeline and expected revenue streams.
The changes to both the offtake and loan agreements come as Liontown navigates the complexities of bringing a major lithium project online amidst fluctuating market conditions. The company has been actively working to optimise its project development strategy to ensure long-term success and to meet the evolving demands of its key partners in the electric vehicle supply chain. The Kathleen Valley project remains a crucial asset in Liontown’s portfolio, poised to contribute significantly to the global lithium supply.
