Liontown Resources Limited,the Australia-based battery metals exploration and development company, have announced that it has completed negotiations with LG Energy Solutions (LGES), a major electric vehicle (EV) battery supplier, and executed an Offtake Agreement for the supply of spodumene concentrate from its flagship 100 percent owned Kathleen Valley Lithium Project.
The agreement sees Liontown supplying up to 150,000 dry metric tonnes (DMT) per annum of spodumene concentrate produced at Kathleen Valley. The initial five-year term is expected to commence in 2024, with the ability to extend for a further five years, and represents approximately one-third of the project’s start-up spodumene concentrate production capacity.
LGES, which recently appointed Dr Peter Kyungsuk Pyun as its new chief digital officer, is continuing to rapidly expand its business amid growing demand for lithium-ion batteries from the electric vehicle sector globally.
At the end of last year LGES and Stellantis, one of the world’s leading automakers made up of 14 motor brands including Vauxhall, Peugeot, Fiat, Citroen and Jeep, announced they were joining forces for lithium-ion battery productionfor electric cars in North America.
The completion of the full-form agreement with LGES marks another key milestone for Kathleen Valley, following the signing of an offtake terms sheet with leading electric car manufacturer Tesla for the supply of up to 150,000 DMT per annum. Liontown continues to progress negotiations with other potential Tier-1 global customers which would complement its off-take strategy.
Kathleen Valley is a new, globally significant, lithium development project located 423 miles (680km) northeast of Perth in Western Australia’s premier mining district. The Project also has an integrated and value-adding environmental, social, and corporate governance (ESG) focus, with 60 percent renewable power at start-up and a strong working relationship with the traditional owners of the land, the Tjiwarl.
Tony Ottaviano, Liontown CEO, said: “We are delighted to have concluded negotiations with LG Energy Solution allowing us to execute our first full form Spodumene Concentrate Offtake Agreement for up to 30 percent of our production.
“This establishes the foundation for a long-term partnership and we are proud that we will be supplying lithium from the Kathleen Valley Project to LGES, a respected global leader in the lithium battery value chain.”
Mr KY Lee, LG Energy Solution’s Vice President, Strategic Procurement, said: “The Offtake Agreement with Liontown provides for a long-term supply partnership, with Kathleen Valley representing the opportunity to diversify our sources of Lithium with spodumene concentrate from a Tier-1 project in a world-class mining jurisdiction.
“We look forward to continuing to work with Liontown through project development and operation.”