Australia’s Clean Energy Finance Corporation (CEFC) has made a groundbreaking move in the resources sector by committing up to $110 million to support the development of the nation’s next lithium mine. This investment in Liontown Resources’ Kathleen Valley lithium project in Western Australia marks the CEFC’s largest foray into the resources sector, highlighting the country’s commitment to securing a critical low-carbon source for the clean energy supply chain.
The financing package for Liontown Resources, totaling $550 million, includes contributions from Export Finance Australia, Commonwealth Bank, National Australia Bank, and Societe Generale. With established offtake agreements with industry giants such as Tesla, Ford Motor Company, and LG Energy Solution, this investment is poised to significantly impact lithium production dynamics in Australia and promote sustainable mining practices.
Rob Wilson, CEFC’s executive director for WA and resources, emphasized the project’s potential to advance lithium production while adhering to leading sustainability standards. The Kathleen Valley underground mine, situated north of Kalgoorlie in the Goldfields region, is designed to operate with significant renewable energy integration. It will feature 46MW of renewable energy generation and a 17MW battery, ensuring at least 60% renewable energy usage from the outset.
Liontown’s CEO Tony Ottaviano expressed that the project is nearing production, with the green bank’s support pivotal in achieving this milestone. He highlighted Kathleen Valley’s role in the global transition to a net-zero future, producing battery materials with a minimal carbon footprint.
The announcement of this investment led to a 10.6% surge in Liontown’s share price, reflecting investor confidence in one of the world’s largest and highest-grade hard rock lithium deposits. This development follows Albemarle’s decision to abandon a $6.6 billion takeover bid for Liontown, amidst a significant downturn in lithium prices. 
