Liontown Resources Limited announced that it has entered into a legally binding sales and purchase term sheet with electric vehicle manufacturer Tesla for the supply of spodumene concentrate. The Agreement is for the supply of up to 150,000 dry metric tonnes ("DMT") per annum of spodumene concentrate to be produced at Liontown's Kathleen Valley Lithium Project in Western Australia ("Kathleen Valley") and is expected to commence in 2024, representing approximately one-third of the Project's start-up SC6.0 production capacity of approximately 500ktpa. Under the Agreement with Tesla, pricing is determined by a formula-based mechanism linked to market prices for Lithium Hydroxide Monohydrate.

Using today's market pricing, the contract terms would deliver an SC6.0 price outcome for Liontown that is greater than the pricing assumptions used in the DFS. Notwithstanding this, investors should note that the pricing received by Liontown under the Agreement with Tesla will be determined by market prices at the time of each shipment.