Liontown Resources Secures $250M from LG Energy Solution to Advance Kathleen Valley Lithium Project
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Australian lithium producer Liontown Resources has signed a $250 million strategic partnership with South Korean battery producer LG Energy Solution. This strategic partnership aims to secure a steady supply of lithium, a critical material for electric vehicles and other green technologies.
“Liontown is very pleased to formalize this strategic partnership with LG Energy Solution, one of the world’s leading battery producers, marking a significant milestone in our journey towards becoming a globally significant supplier of battery minerals as the world transitions to a low-carbon future,” said Tim Goyder, chairman of Liontown Resources.
“I am very pleased to announce that we have taken a major step forward in our strategic partnership with foundational customer LG Energy Solution, one of the world’s leading battery producers. LG Energy Solution’s long-term investment in Liontown is a testament to the world-class quality of the Kathleen Valley Project and a tremendous endorsement of the capability of our team,” said Liontown’s Managing Director and CEO, Tony Ottaviano.
Under the new deal, Liontown will supply 700,000 tons of spodumene concentrate in the first five years and 1.5 million tons over the subsequent 10 years. Additionally, the partnership includes a downstream collaboration to explore the feasibility of establishing a lithium refinery, which could provide long-term value by processing spodumene from Kathleen Valley into battery-grade lithium chemicals.
Liontown’s flagship project, the Kathleen Valley Lithium Mine in Western Australia, is one of the world’s largest and highest-grade hard rock lithium deposits. Despite a sharp decline in lithium prices from their 2022 peaks, Liontown has continued to advance the project.
The mine is expected to begin production by the end of July, with the initial production ramping up to 3 million tons per annum (Mtpa). This new investment will support the early works necessary for the potential expansion to 4 Mtpa by 2027.
The new partnership could significantly shift supply chain dynamics by developing a lithium refinery, which could bypass Chinese supply chains.
“The agreement represents another significant step in our value chain investment strategy aimed at enhancing its resilience to market uncertainties. By partnering with strong players like Liontown, we will continue to secure a stable supply of IRA-compliant critical minerals,” said David Kim, CEO of LG Energy Solution.
Under the new deal, the initial five-year supply agreement has been expanded to 15 years.
Liontown Resources engages in the exploration, evaluation, and development of mineral properties in Australia. The company explores for lithium, gold, vanadium, copper, and nickel deposits, as well as platinum group elements. Its flagship property is the Kathleen Valley lithium project located in Perth, Western Australia. The company was incorporated in 2006 and is based in West Perth, Australia.
LG Energy Solution is a company that provides energy solutions. It develops advanced automotive, mobility and IT, and energy storage system batteries.
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