Liontown Ltd (ASX: LTR) shares are pushing higher again on Tuesday morning.
At the time of writing, the lithium miner's shares are up 2% to $1.55.
This means that the company's shares are now up 18% week to date.
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Why are Liontown shares pushing higher?
Investors have been bidding the company's shares higher for a couple of reasons this week.
The first is the release of a bullish broker note out of UBS on Monday. Its analysts upgraded Liontown shares to a buy rating (from sell) with a vastly improved price target of $1.80 (from 80 cents).
UBS made the move after lifting its lithium price forecasts to reflect its belief that a supply deficit could be on the horizon.
Another reason that Liontown shares are lifting off this week is the release of an announcement this morning, which could be a big boost to its revenue in the near term.
Offtake agreement
This morning, Liontown revealed that it has executed an offtake agreement with Canmax for the supply of 150,000 wet metric tonnes (wmt) of spodumene concentrate per year over two years in 2027 and 2028.
The company advised that the pricing for this offtake agreement will be determined using a formula referencing spodumene concentrate indices.
It also notes that the agreement complements Liontown's existing arrangements with its tier one customers and forms part of its approach to diversifying its customer base by geography and location on the battery value chain.
Canmax, which is listed on the Shenzhen Stock Exchange in China, is one of the world's leading manufacturers of lithium-ion battery materials. This includes lithium hydroxide, lithium carbonate, and other products. It is a key customer of several Australian and International raw material producers.
Liontown's Managing Director and CEO, Tony Ottaviano, was very pleased with the agreement with Canmax. Commenting on the news, he said:
We are pleased to execute an Offtake Agreement with Canmax, one of the world's leading lithium chemicals companies. Their participation in our 2025 institutional placement signalled strong confidence in the long term potential of Kathleen Valley, and this Offtake Agreement reinforces their commitment. Securing sales linked to spodumene concentrate indices coupled with continuing our strategy of platform based spot sales ensures we realise fair value for the products we produce.
Following today's move higher, Liontown shares are now up an impressive 35% since this time last month. Whereas the ASX 200 index is down approximately 2.7% over the same period.
