Australian lithium miner Liontown Resources announced that it and Tesla agreed to extend the termination date of their binding off-take terms agreement with Tesla to June 6, 2022. The extension will allow the company and Tesla to complete negotiations on a final full-form offtake agreement.
In February, Liontown Resources signed a five-year spodumene concentrate supply agreement with Tesla. Under the agreement, the company will supply lithium to Tesla from its Kathleen Valley lithium project in Western Australia.
In addition to Tesla, Liontown Resources also signed a five-year lithium concentrate supply agreement with South Korean battery maker LG Energy Solutions on May 2 this year. It is reported that lithium is a key material in the production of electric vehicle batteries. Lithium supply has long been a point of contention in future electric vehicle discussions.
In September 2020, Tesla also signed a five-year supply agreement with Piedmont. Under the terms of the agreement, the company will supply Tesla with high-purity lithium ore from its mine in North Carolina.