Liontown Resources (ASX:LTR) shares traded in green today, here’s why

3 min read | May 30, 2022 03:45 PM AEST | By Priyanka Payal

Liontown Resources (ASX:LTR) shares traded in green today, here’s why

Highlights

Liontown and Tesla have agreed to extend the termination date for a binding offtake term sheet signed between them to 6 June 2022.

The deal concerned the supply of lithium spodumene concentrate from Liontown Resources’ Kathleen Valley Lithium project.

The shares of Liontown Resources Limited traded 4.166% higher at AU$1.375 per share on ASX at 1:43 PM AEST.

The share price of Liontown Resources Limited (ASX:LTR) remained on investors’ radar today (May 30) after it was revealed that the company has agreed to extend the termination date for its binding offtake term sheet with electric vehicle manufacturer Tesla to 6 June 2022.

The two companies will now work towards negotiating a full form binding offtake agreement.

Backed by this news, the shares of Liontown Resources Limited traded 4.166% higher at AU$1.375 per share on ASX at 1:43 PM AEST today. Shares of Liontown Resources have gained 145.54% in the last 12-months, while the stock is down 21.43% year-to-date (YTD).

Image Source: © Jasonbennee| Megapixl.com

Liontown Resources Limited is a mineral exploration and development company involved in developing and supplying battery materials like high-quality lithium to meet the demands of the growing Electric Vehicle and Energy Storage industries. The company controls two major lithium deposits in Western Australia.

As per today’s announcement, the extension allows Liontown and Tesla to complete negotiations for the definitive full form binding offtake agreement.

The deal, which was earlier set to expire today, was concerning the supply of 150,000 dry metric tonnes per annum of spodumene concentrate produced at the company’s Kathleen Valley project in WA.

The agreement anticipated to commence in 2024 represents roughly one-third of the Project’s start-up production capacity of ~500ktpa.

Earlier this month, the company revealed that it executed its first definitive full form Offtake Agreement with LG Energy Solutions to supply spodumene concentrate from its flagship 100%-owned Kathleen Valley Lithium Project.

Meanwhile, the share price of several Lithium stocks fared well today as investors showed interest in risk assets after inflation concerns eased in the US. The shares of major Lithium stocks, Core Lithium Ltd (ASX:CXO), Pilbara Minerals Limited (ASX:PLS), and Vulcan Energy Resources Ltd (ASX:VUL) were up 5.363%, 2.405%, and 5.851% at AU$1.375, AU$2.980, and AU$7.960 respectively.

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