Liontown secures another key offtake deal

BSIT is a well-known company operating in the lithium chemicals industry, and is active in both hard-rock lithium mining and refining of spodumene concentrates into battery-grade lithium chemicals.
BSIT is a well-known company operating in the lithium chemicals industry and is active in both hard-rock lithium mining and refining of spodumene concentrates into battery-grade lithium chemicals.

Liontown Resources (ASX: LTR) has secured a 10-month offtake agreement with Beijing Sinomine International Trade Co. (BSIT) to purchase ramp-up volumes.

The 100,000dmt supply of spodumene concentrate will come from Liontown’s Kathleen Valley lithium project in WA.

This agreement is in addition to existing long-term offtake contracts with Tesla, LG Energy Solution and Ford which will be progressively brought into effect over the next 12 months as Liontown ramps-up Kathleen Valley to full-production.

Liontown managing director and chief executive Tony Ottaviano says these offtakes complement each other.

“Securing a near-term offtake with an established lithium refiner to sell initial volumes over the ramp-up period, de-risks sales during our ramp-up of the plant towards nameplate capacity,” he said.

“This complements our existing long-term offtakes, which we will progressively bring into effect over the next 12 months as we increase production towards nameplate to support our offtake commitments.”

The short-term offtake agreement will commence by September 30, 2024.

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