LG Energy Solution and Liontown Resources Partner for Lithium Supply and Growth

LG Energy Solution (KRX: 373220) and Liontown Resources Limited (Liontown) have announced a strategic partnership to strengthen their collaboration in the global lithium sector.

The agreement includes a convertible note subscription, an extended offtake agreement for high-quality lithium spodumene from Liontown’s Kathleen Valley project, and a collaboration to explore establishing a lithium refinery for long-term value creation.

This partnership underscores both companies’ commitment to sustainable lithium solutions and innovation in the industry. The agreement will be formalized at a ceremony at LG Energy Solution headquarters in Seoul, Korea, scheduled for July 4th.

Key aspects of the partnership include:

  • Extension of LG Energy Solution’s existing 5-year offtake agreement to 15 years, providing a total of 2.45 million tonnes of spodumene concentrate.
  • Collaboration on feasibility studies for an IRA-compliant lithium refinery to produce battery-grade lithium chemicals from Kathleen Valley spodumene.
  • LG Energy Solution’s investment of US$250 million (A$379 million) through Convertible Notes to support Liontown’s Kathleen Valley Project ramp-up.

David Kim, CEO of LG Energy Solution, emphasized the strategic move to enhance supply chain resilience amid market uncertainties, ensuring competitive power solutions for electrification.

Tim Goyder, Chairman of Liontown Resources, highlighted the partnership’s significance in becoming a major global supplier of battery minerals, aligning with their strategy for downstream refining and delivering long-term shareholder value.

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