Liontown Resources said on Tuesday that it has agreed with Tesla to make changes to the pricing mechanism in their long-term offtake agreement.
The pricing changes come as the lithium miner looks to move away from lithium hydroxide indices to spodumene concentrate, part of its bigger goal to be exposed to a “basket” of pricing references across main lithium products such as lithium hydroxide, lithium carbonate and spodumene concentrate.
Liontown clarified that there will not be any changes to the remaining volumes under the agreement for the remainder of the term, which ends in 2029.
The company is also in talks with Ford Motor to revise their offtake and loan agreements, which Liontown said could change contract quantities, purchase commitments for future deliveries, and re-profiling of debt arrangements.
(By Nichiket Sunil; Editing by Alan Barona)
