Liontown (ASX:LTR) said today it signed an offtake agreement with Ford to supply the car company with up to 150,000 dry metric tonnes (DMT) per annum. The agreement will have an initial term of 5 years from the commencement of commercial production, which is expected in 2024.
Ford and Liontown have also executed a binding full-form funding facility agreement with respect to a A$300 million debt facility to be used for the Project’s development.
“The signing of our third and final foundational offtake agreement is a momentous milestone for Liontown and the Kathleen Valley project, with approximately 90% of Kathleen Valley’s start-up capacity now under secured long-term binding offtake agreements,” said Liontown’s Managing Director and CEO Tony Ottaviano. “Our disciplined approach to our offtake strategy has enabled us to build a customer base of Tier-1, globally significant customers in the EV battery supply chain, validating Kathleen Valley’s status as a globally relevant lithium asset.”
"In addition to the offtake, the A$300 million funding facility from Ford, together with the capital raised last year, means that we have secured commitments for the funds required to support the full commercial development of Kathleen Valley through to first production."
