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3
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· Posted on
February 21, 2024

Aussie miner Liontown Resources cuts deal with Tesla

Electric vehicle OG Tesla needs lithium to help its production line...and it's picked its supplier.

What's the key learning?

  • Liontown Resources has just secured a 5-year deal with Tesla to supply 100,000 tonnes of lithium per year
  • As we see the rapid growth of the electric vehicle market globally, we’re also seeing an increased demand for lithium
  • And with supply of lithium becoming tight, it’s no surprise that Tesla is keen to lock in suppliers for the next 5 years.

Background: Liontown Resources is a Western Australia based mining company that specialises in lithium. And it seems to be a fave amongst big name tech companies.

What happened: The company recently signed a deal to supply lithium to LG, the electronics company. And now, it's just secured a 5-year deal with Tesla to supply 100,000 tonnes of lithium per year.

What else: After the Tesla partnership announcement, Liontown Resources' shares jumped over 15%. As we know, Elon has the Midas touch.

So what's the key learning?

💡As we see the rapid growth of the electric vehicle market globally, we’re also seeing an increased demand for lithium.

💡It’s expected that by 2030, 35% of all cars will be electric vehicles.That's compared to only 2% of electric vehicles today.

💡And with supply of lithium becoming tight, it’s no surprise that Tesla is keen to lock in suppliers for the next 5 years.

‍

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