Liontown revises Tesla deal

Liontown (ASX: LTR) has amended its pricing mechanism in its long-term offtake agreement with Tesla.

This comes as the miner shifts from lithium hydroxide indices to spodumene concentrate, in line with Liontown’s strategy to be exposed to a ‘basket’ of pricing references across the main lithium products.

The revised pricing mechanism will apply to all future deliveries under the agreement. There is no change to the remaining volumes under the agreement for the balance of the term ending in 2029.

Liontown is also in advanced discussions with Ford Motor Company in relation to proposed amendments to the offtake and loan facility agreements.

To provide additional time to conclude these discussions, the parties have agreed to amend the loan facility agreement with the first repayment principal and interest — originally due on September 30, 2025 — due and payable on October 8, 2025, unless otherwise agreed.