Here are 5 ASX resources stocks working with big automakers! Are these signs to buy??

Today’s ‘list of stocks’ is of ASX resources stocks working with big automakers.

If an ASX resources company (particularly at the development stage) wants a ringing endorsement for its project, there is nothing else like a big automaker signing as an offtake partner – in other words, to take the metal from the project and use it in its own vehicles. This is a sign of trust that there is sufficient material, but also that it is of good enough quality. It is important to note that some deals may be conditional on these companies’ projects entering production so investors should always read the disclosed fineprints of any deal.

Without further ado, here are some ASX resources stock with a ringing endorsement.

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ASX resources stocks working with big automakers

Liontown (ASX:LTR)

Liontown is runnings its Kathleen Valley project in Western Australia which stareted in 2024. It has one of the strongest sets of offtake relationships on the ASX, including a binding spodumene supply agreement directly with Tesla (a deal signed back in 2022). The deal involved supply of up to 150,000 dry metric tonnes per annum of spodumene concentrate — roughly one-third of the project’s start-up 500 ktpa capacity

Liontown also has an amended and partially deferred offtake arrangement with Ford that while never postponed was linked to funding support and so deferred to a while, and an additional offtake with LG Energy Solution. Liontown is no longer a speculative permitting story; its investment case now rests on operational execution, cost control and successfully meeting delivery specifications for Tier-1 customers.

Syrah Resources (ASX: SYR)

Syrah is a graphite producer with downstream anode active material processing in the United States. It has a long-term offtake agreement with Tesla to supply anode material from its Vidalia facility, although timelines have been extended due to qualification and ramp-up challenges. The deal was first signed in 2021 committing to 8000 metric tonnes of graphite – but there have been several extensions of cure deadlines as Syrah works to meet Tesla’s technical specifications

Syrah also has framework discussions and memoranda of understanding related to Ford’s BlueOval SK battery joint venture, giving it indirect exposure to Ford. Syrah is already producing, but its valuation and credibility are closely tied to consistent operating performance and meeting customer specifications.

Ioneer (ASX: INR)

Ioneer is a development-stage lithium company advancing the Rhyolite Ridge project in the United States. It has a binding lithium carbonate offtake agreement with BlueOval SK, the battery joint venture between Ford and SK On, which supplies Ford’s electric vehicle program. The deal was signed in July 2022.

The company has also signed other lithium offtake agreements with Toyota/Panasonic JV Prime Planet Energy & Solutions and with EcoPro Innovation that together cover a meaningful portion of Rhyolite Ridge’s planned output, reinforcing confidence in the product quality anticipated from the project.

The project is not yet in construction and still carries development and permitting risk, but it is one of the more advanced US-based lithium projects with direct alignment to an automaker’s supply chain. It has since progressed through major permitting and secured a large US Department of Energy loan to support development, targeting first production to align with these offtake commitments

Element 25 (ASX: E25)

Element 25 is developing a downstream manganese processing business focused on producing high-purity manganese sulphate for electric vehicle batteries. It has a binding offtake agreement with Stellantis, one of the world’s largest automakers. For those who hadn’t heard the name before, Stellantis formed in 2021 from the merger of Fiat Chrysler Automobiles (FCA) and the French PSA Group, which owned iconic brands like Jeep, Ram, Dodge, Fiat, Peugeot, Citroën, Opel, and Maserati.

The contract’s structure includes product qualification conditions and feasibility milestones that Element 25 must satisfy before commercial supply begins, with deliveries originally expected to start around 2026

While Element 25 is still in the development phase and building out processing capacity, the Stellantis agreement provides strong commercial validation for its strategy and exposure to a less crowded EV materials market than lithium. And this kind of offtake deal is one of the clearest examples of an OEM backing a critical battery material project well before it is producing commercially.

BHP (ASX:BHP)

BHP has multiple agreements, but we’d focus on its deal with Tesla. The partnership, first announced in July 2021, involves the supply nickel from its Nickel West operations in Western Australia for use in electric vehicle batteries, and the two companies also agreed to collaborate on ways to make the battery supply chain more sustainable.