Ford has executed a definitive binding full-form offtake settlement with Australia-based Liontown Sources for the provision of as much as 150,000 dry metric tonnes (DMT) each year of spodumene focus—a supply of lithium important in key EV battery chemistries. The spodumene focus will come from Liontown’s flagship 100%-owned Kathleen Valley Lithium Undertaking in Western Australia for 5 years.
Ford continues working to supply extra deeply into the battery provide chain to fulfill our objectives of delivering greater than 2 million EVs yearly for our prospects by 2026. That is one among a number of agreements we’re engaged on to assist us safe uncooked supplies to assist our plan to ship EVs for purchasers world wide and meet our environmental, social and governance commitments.
—Ford’s vp of EV Industrialization, Lisa Drake
The settlement represents Liontown’s third and last foundational offtake required to underpin the event of Kathleen Valley— marking the fruits of the disciplined execution of its offtake technique.
Along with the beforehand introduced binding full-form offtake agreements with Tesla (6 June 2022) and LG Vitality Answer (2 Could 2022), Liontown’s complete offtake commitments now stand at as much as 450,000 DMT each year of spodumene focus, representing roughly 90% of Kathleen Valley’s start-up SC6.0 manufacturing capability of ~500 ktpa.
The remaining manufacturing from Kathleen Valley is meant to be retained for spot quantity gross sales and/or discrete offtake agreements.
Provide to Ford is anticipated to start in 2024, with volumes of 75,000 DMT of spodumene focus in yr one among operations, growing to 125,000 DMT in yr two and 150,000 DMT for years three to 5 of the preliminary five-year time period.
Beneath a separate funding facility, a Ford subsidiary will present a A$300 million debt facility to Liontown, with the proceeds for use in direction of partially funding the event prices of Kathleen Valley. The funding facility, along with the A$463 million raised by Liontown in December 2021, signifies that Liontown has now secured commitments for the required funds to assist the total growth of the undertaking via to first manufacturing.
The finalization of debt funding, together with completion of foundational offtake preparations, paves the best way for a Ultimate Funding Determination for the undertaking.
Kathleen Valley is a brand new, globally vital, lithium growth undertaking positioned 680km north-east of Perth in Western Australia’s premier mining district. Underpinned by a world-class lithium deposit with a Mineral Useful resource Estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5, Kathleen Valley is forecast initially to supply ~500 ktpa of SC6.0 spodumene focus increasing to ~700 ktpa. The Undertaking additionally has an built-in and value-adding ESG focus with better than 60% renewable energy provide deliberate at start-up and a powerful working relationship with the Conventional Homeowners of the land (the Tjiwarl).
Mining will predominately be underground, permitting direct entry to greater grade mineralization whereas minimizing waste and the environmental footprint of the undertaking, Liontown says.
Mined ore will probably be processed via a Entire of Ore Flotation circuit which can present an estimated restoration charge of 78% throughout the mine life and an estimated web site restoration for tantalum focus of 42%.
