Liontown Resources will fully develop its 100 per cent-owned Kathleen Valley Lithium Project in Western Australia, following the execution of a third and final foundational offtake agreement, together with a $300 million debt facility from leading global automaker, Ford Motor Company.
It follows the previously announced foundational offtake agreements with Tesla and LG Energy Solution, and the $463 million capital raise in December 2021.
Liontown’s offtake commitments represent about 90 per cent of Kathleen Valley’s start-up production capacity of about 500 kilotonnes per annum.
In preparation for project delivery, the company continues to progress a series of major contracts (including EPCM, power purchase agreement, freight logistics, bulk earthworks and open cut mining services) with established and high-quality contractors. Work has also progressed across the construction scope and procurement is advancing for the remaining project activities in line with the development plan.
Liontown has already awarded about 73 per cent of mechanical equipment long lead items to high quality vendors, and awarded total process plant and non-process infrastructure packages with an estimated value of $83 million, ensuring that the project remains on schedule.
Importantly, the company has awarded the contract for the design, build and construction of a high-quality modern accommodation village to assist in attracting and retaining employees.