The Liontown Resources Ltd (ASX: LTR) share price is starting the week positively.
In morning trade, the lithium developer's shares are up 3% to $1.40.
Why is the Liontown share price rising?
Investors have been bidding the company's shares higher today after it announced a Port Services and Access Agreement with the Mid West Ports Authority (MWPA).
According to the release, the agreement will facilitate the export of lithium spodumene concentrate from the Kathleen Valley Project via the Port of Geraldton to global tier-one offtake partners. These are LG Energy Solution, Tesla, and Ford Motor Company.
Importantly, Liontown has received the required approval for the 10-year agreement from WA Ports Minister Hon. David Michael. He has also approved extension options for a further 10 years and 3 years respectively, aligned to the expected mine life of the Kathleen Valley Project.
The release also notes that Liontown is partnering with Qube Holdings Ltd (ASX: QUB) to provide road transportation and port-side storage management services to enable the controlled transfer of product directly onto MWPA's automated ship loading infrastructure.
Management highlights that the integrated pit-to-port logistics solution will provide industry-leading safety systems for trucking high volumes of bulk material safely by road and onto ocean going vessels.
Liontown's Managing Director and CEO, Tony Ottaviano, was pleased with the news. He said:
Approval by WA Ports Minister Hon. David Michael of the port agreement represents the final step in securing our supply chain to export lithium ore from Kathleen Valley. The Port of Geraldton is a world-class facility with future growth aspirations, and Liontown is pleased to support the diversification of critical minerals exports out of the port for at least the next 20 years. We thank the Mid West Ports Authority, for their support and look forward to exporting material from mid-2024.
The Liontown share price remains down over 30% since this time last year.
