Australia markets closed
  • ALL ORDS

    6,762.40
    +71.00 (+1.06%)
     
  • ASX 200

    6,578.70
    +50.30 (+0.77%)
     
  • AUD/USD

    0.6952
    +0.0053 (+0.77%)
     
  • OIL

    107.06
    +2.79 (+2.68%)
     
  • GOLD

    1,828.10
    -1.70 (-0.09%)
     
  • BTC-AUD

    30,331.92
    -322.15 (-1.05%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • AUD/EUR

    0.6583
    +0.0033 (+0.51%)
     
  • AUD/NZD

    1.0996
    +0.0016 (+0.14%)
     
  • NZX 50

    10,813.92
    +135.25 (+1.27%)
     
  • NASDAQ

    12,105.85
    +408.17 (+3.49%)
     
  • FTSE

    7,208.81
    +188.36 (+2.68%)
     
  • Dow Jones

    31,500.68
    +823.32 (+2.68%)
     
  • DAX

    13,118.13
    +205.54 (+1.59%)
     
  • Hang Seng

    21,719.06
    +445.19 (+2.09%)
     
  • NIKKEI 225

    26,491.97
    +320.72 (+1.23%)
     

Tesla Enters 5-Year Deal With Australian Lithium Supplier Liontown Resources

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Sam Boughedda

Investing.com — Liontown Resources Ltd (ASX:LTR) announced Wednesday that it has a deal with Tesla Inc (NASDAQ:TSLA) to supply lithium spodumene concentrate, news that sent its stock up 18% during the Australia session.

The material will come from Liontown's new A$473 million ($337 million) Kathleen Valley Lithium Project in Western Australia.

The deal is for an initial five years and is set to begin in 2024.

Tesla will purchase 100,000 dry metric tonnes in the first year, increasing to 150,000 per year in subsequent years.

Liontown said major construction work at the project is scheduled to begin in the fourth quarter 2022.

While no financial details were disclosed, Liontown said pricing was determined using a formula-based mechanism referencing market prices for lithium hydroxide monohydrate.

Liontown has now contracted over half of its anticipated production from Kathleen Valley during the first five years of operation, while it is continuing negotiations with other potential customers for the remaining output.

Tesla shares are down 1.29% Wednesday.

Related Articles

Tesla Enters 5-Year Deal With Australian Lithium Supplier Liontown Resources

Meta CEO Zuckerberg promotes Nick Clegg to lead on policy issues

Barrick Gold announces $1 billion buyback as quarterly earnings jump

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting