The Liontown Resources Ltd (ASX: LTR) share price is basking in a bright green haze on Monday.
In a positive start to the week, shares in the battery metals exploration company are currently 3.8% ahead of their previous closing price at $1.37 apiece. Investors were even more eager earlier this morning, bidding the Liontown Resources' share price up almost 6% to an intraday high of $1.395.
Excitement gripped the company amid news it has secured an extended offtake term sheet with Tesla Inc (NASDAQ: TSLA).
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More time to flesh out supply agreement
On a day riddled with strong performances across the lithium and battery materials sector, Liontown Resources is no exception. With its trading volume above average for this time of day, the $2.9 billion lithium hopeful has attracted attention with its latest announcement.
According to Liontown, it has mutually agreed with US electric vehicle powerhouse Tesla to extend its previously formed offtake term sheet. As a result, the termination date for the agreement has been pushed back to 6 June 2022.
The deal was set to expire today if the two parties had not completed negotiations for a definitive agreement. Thankfully for the Liontown Resources share price, the extension provides another week to iron out the full form binding offtake agreement.
The deal concerns the supply of 150,000 dry metric tonnes per annum of spodumene concentrate. This is to be sourced from the company's Kathleen Valley Lithium project in Western Australia.
Further, the extension follows Liontown's binding offtake agreement with LG Energy Solution, cemented on 2 May.
Reflecting on the Liontown Resources share price
Despite a pullback from its recent all-time high in April, the Liontown Resources share price continues to exceed benchmark returns on a trailing 12-month basis.
While the S&P/ASX 200 Index (ASX: XJO) is hanging on to a 1% gain in the last 12 months, shares in the lithium explorer are up an explosive 142% in that time.
As my colleague Tony Yoo penned earlier today, Macquarie Group Ltd (ASX: MQG) holds a positive outlook on the Liontown Resources share price. Analysts at the investment bank have stamped the company with a $2.50 price target.
