Elevra Lithium : Why the Stock Is Falling After the LG Deal ?
Written by
Varun Ratra
Elevra signed a solid offtake deal with LG Energy Solution on 8 October 2026. Shares still fell a few percent that day (trading around 5.00–5.20). The stock sits well below its 52-week high near $14.
Here’s a clear breakdown.
The LG Deal in Brief
Elevra locked in a binding Spodumene Concentrate Supply Agreement with LG Energy Solution (a major global battery maker).
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Volume: 240,000 dry metric tonnes (dmt) base over three years
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30,000 dmt in 2026
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60,000 dmt in 2027
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60,000 dmt in 2028
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90,000 dmt in 2029
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Extra option: Up to another 90,000 dmt if both sides agree
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Pricing: Market-linked (adjusted for lithium content) — Elevra keeps upside if prices rise
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Source: North American Lithium (NAL) mine in Québec
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Start: First shipments expected later in calendar 2026
Management called it a key step toward better customer diversification while NAL expands.
Also Read | ASX Lithium Companies
Why Shares Are Still Falling
The deal itself is commercially positive. The negative reaction comes from the wider backdrop:
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Weak lithium prices dominate. Spodumene prices have been soft for much of 2026. Market-linked pricing means no fixed high margin if the commodity stays low.
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“Sell the news” reaction. Positive announcements often trigger profit-taking when a stock is already in a downtrend.
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Volume is meaningful but not game-changing. 240,000 dmt covers a solid portion of NAL output, yet the mine has already been running at ~50,000+ dmt per quarter.
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Other overhangs remain. The proposed sale of Elevra’s Ewoyaa interest in Ghana (~US$71 million) still needs Ghanaian government approvals (deadline around late October). Earlier capital raisings also expanded the share count.
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Sector pressure. Lithium equities overall remain sensitive to EV demand, Chinese supply and inventory levels.
Also Read | Best ASX Lithium stocks to buy
Bottom Line
The LG agreement strengthens Elevra’s customer book and supports NAL’s growth plans. In a stronger price environment it would likely have been better received.
Right now the market is focused on soft lithium prices and residual risks. That is why the stock is still falling after the news.
This is not investment advice. Lithium stocks are volatile. Check the latest ASX announcements and consider your own situation before any decision.
References & Sources
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