Tesla has signed a five-year supply agreement with Australia's Liontown Resources, which will supply more than 150,000 tons of lithium spodumene concentrate per year starting in 2024.
The agreement between Tesla and Liontown is for the supply of up to 150,000 dry metric tons per year of spodumene concentrate, which will be produced at Liontown’s Kathleen Valley lithium project in Western Australia and is expected to start in 2024, representing approximately one-third of the project's start-up SC6.0 production capacity of ~500ktpa. Pricing will be determined by a “formula-based mechanism” based on market prices for lithium hydroxide monohydrate, the company said.
The deal with Tesla is the second purchase agreement the Australian lithium maker has struck this year, after signing a similar contract with South Korea's LG Chem, which supplies batteries to Tesla, in January. “We now have two of the premier companies in the global lithium-ion battery and EV space signed up as foundational customers, marking a significant step towards realizing our ambition to become a globally significant provider of battery materials for the clean energy market,” chief executive and managing director Tony Ottaviano said in a statement.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.