LG Energy Solution and Liontown Resources have announced a strategic partnership to enhance their collaboration in the global lithium market. This partnership includes an extension of LG Energy Solution’s existing 5-year offtake agreement with Liontown by an additional 10 years, making it a total of 15 years.
Under the extended agreement, Liontown will supply 700,000 tonnes of spodumene concentrate over the first five years, and 1.5 million tonnes over the subsequent 10 years. Additionally, there is a commitment to provide up to 250,000 tonnes of spodumene concentrate over the first 10 years, totaling 2.45 million tonnes.
The partnership also involves a downstream collaboration agreement to conduct feasibility studies for establishing a lithium refinery compliant with the Inflation Reduction Act (IRA). This refinery aims to process spodumene from the Kathleen Valley into battery-grade lithium chemicals.
LG Energy Solution will invest US$250 million through Convertible Notes to support the production ramp-up of Liontown’s Kathleen Valley Project in Western Australia. The first production of lithium spodumene concentrate from Kathleen Valley is expected by the end of July. 
