Liontown Resources has agreed with Tesla to modify the pricing mechanism in their long-term lithium offtake agreement, Reuters reported.
The changes are part of Liontown’s strategy to shift from lithium hydroxide indices to spodumene concentrate and to broaden exposure across a “basket” of pricing references, including lithium hydroxide, lithium carbonate, and spodumene concentrate.
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The miner clarified that volumes under the Tesla agreement for the remainder of the contract, which runs through 2029, will remain unchanged.
Reuters also reported that Liontown is in discussions with Ford Motor to revise its offtake and loan agreements. These negotiations could alter contract quantities, future delivery commitments, and the structure of associated debt arrangements.
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The moves come amid weaker-than-expected demand for electric vehicles, which has prompted automakers and suppliers worldwide to adjust production and investment plans.