Liontown and Beijing Sinomine have a 10-month Offtake Agreement

Published: Jul 22, 2024 13:58

Source: SMM

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On 14 July, Liontown Resources announced a 10-month offtake agreement with Beijing Sinomine International Trade Co., Ltd. to supply up to 100,000 dry metric tonnes of spodumene concentrate from its Kathleen Valley Lithium Project in Western Australia, starting from September 2024. Kathleen Valley is targeting 3 million tonnes of spodumene concentrate annual producing capacity in its initial operation, while eyeing an expansion to 4 million tonnes per year.

Offtake pricing will be based on market prices for battery-grade lithium carbonate. Sinomine is the first and only Chinese offtaker announced by Liontown. The company says that this deal aims to secure initial ramp-up volumes, mitigating sales risks as production scales up. The announcement also re-emphasizes Liontown's existing long-term contracts with Tesla, LG Energy Solution, and Ford.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn

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