Reuters- Australia said on Wednesday that it has signed a five-year agreement with Ford Motor Co to supply lithium spodumene from its flagship Kathleen Valley project in Western Australia.
Liontown is expected to supply up to 150,000 dry metric tons DMT of spodumene concentrate per year, a source of lithium essential to the making of batteries for electric vehicles EVs. The Australian miner is expected to start supplying spodumene in 2024, starting with 75,000 DMT in the first year and up to 150,000 DMT in the third year.
Liontown, which previously signed supply deals with South Korea's LG Energy Solution and EV maker Tesla, has secured a debt facility of A $300 million $207.21 million from a Ford unit to further develop the Kathleen Valley project.
A global push towards decarbonisation and net zero emissions has boosted the demand for EVs, which has led to the prices of battery metals like lithium to record levels.
The miner has announced its final investment decision on the project, with its capital cost estimate now rising to A $545 million from A $473 million.