Ford Reaches Five Year Lithium Supply Deal with Australia’s Liontown Resources
- June 29, 2022
- Posted by: Quatro Strategies
- Category: Mining
Australia’s Liontown Resources and Ford Motor Co. have signed a five year agreement for lithium spodumene supply from Liontown’s Kathleen Valley project in Western Australia.
Liontown will supply the automotive giant up to 150,000 dry metric tonnes (DMT) per year of spodumene concentrate, which is essential to make batteries for electric vehicles (EVs).
According to the agreement, the Australian miner is expected to start supplying spodumene in 2024, with 75,000 DMT in the first year of the deal, and taking it up to 150,000 DMT in the third year.
Liontown has also made earlier supply deals with South Korea’s LG Energy Solution and Tesla. The Australian company has also secured a debt facility of A$300 million ($207.21 million) from a Ford unit to further develop the Kathleen Valley project.
Because of a global push for decarbonization and electrification to reach net zero targets, the demand for EVs has soared. As a result, prices of battery metals, including lithium, have reached record levels.
Separately, Liontown announced a final investment decision on the project, with its capital cost estimate now rising to A$545 million from A$473 million.
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