...sometimes you have to read into what is said as well as what is not said:
1. Progressively brought into effect - means there's an offtake delay and the agreements has no fixed delivery date or subject to change and US is in no dire need for lithium at this point
2. LTR mentioned Ford, with supply commencing after 1 July 2025, after 1 July can mean Sept 2025 too- all depends on the market and how aggressive Ford wants to get with EVs.
3. When LTR singles out just Ford, to me it means there is no definite timeline from Tesla and LG on their offtakes nor even status of those offtakes (especially Tesla)
4. LTR does not want to sell at spot prices if they could avoid, but sooner or later they would have to contemplate selling to China at or close to spot, otherwise their inventory is sitting in the warehouse with no cash inflows while the company continues paying their executives and staff using borrowed money.
As Kathleen Valley ramps up to full commercial production, the Company’s strategic offtake agreements will progressively be brought into effect. Additionally, during the quarter, the Company agreed with Ford to commence supply under their Offtake Agreement on or after 1 July 2025, as well as to amend the pricing reference to lithium carbonate rather than lithium hydroxide. This provides Liontown with a more balanced exposure to both lithium hydroxide and carbonate prices. Interest under the Ford Debt Facility is capitalised until supply commences under the Offtake Agreement with Ford
