LG Energy Solution and Liontown Resources Forge Strategic Lithium Partnership

LG Energy Solution and Liontown Resources Limited (Liontown) have announced a strategic partnership aimed at strengthening their enduring collaboration within the global lithium sector.

Under this agreement, the companies have entered into a convertible note subscription agreement, extending an offtake agreement for the supply of high-quality lithium spodumene sourced from Liontown’s Kathleen Valley project, and initiating a downstream collaboration agreement. This strategic partnership will evaluate the viability of a lithium refinery, targeting long-term profitability.

The partnership between LG Energy Solution and Liontown represents a strategic alliance aimed at advancing sustainable and reliable lithium solutions on a global scale. This collaboration underscores their shared commitment to innovation and value creation in the energy sector. By leveraging their respective expertise and capabilities, both companies seek to address the growing demand for lithium technologies while promoting environmental sustainability. Together, they aim to drive forward technological advancements that meet the evolving needs of industries reliant on energy storage solutions.

Scheduled for July 4th at LG Energy Solution's Seoul headquarters, the formalization ceremony will cement the agreement, showcasing the strategic alignment and shared objectives of both companies.

In this significant move, Liontown Resources has expanded its strategic partnership with LG Energy Solution, extending their existing offtake agreement by an additional 10 years. This extension ensures a steady supply of 700kt of spodumene concentrate in the first 5 years, followed by 1,500kt over the subsequent decade. The total commitment amounts to 2.45Mt of spodumene concentrate, reinforcing Liontown's position in the lithium market.

Additionally, the partnership includes plans for a collaborative effort to explore the feasibility of establishing a lithium refinery compliant with IRA standards. This facility aims to process spodumene extracted from Liontown's Kathleen Valley site into high-quality lithium chemicals essential for battery production. LG Energy Solution is further demonstrating its commitment with a substantial investment of US$250 million (A$379 million) through Convertible Notes. This funding infusion will facilitate the Kathleen Valley Project's production ramp-up, positioning Liontown to meet growing demand in the global lithium supply chain.

LG Energy Solution’s CEO, David Kim, highlighted that the agreement marks a pivotal advancement in their strategy to fortify the value chain against market fluctuations. By collaborating with established partners such as Liontown, LG Energy Solution aims to ensure a consistent supply of IRA-compliant critical minerals. This move aligns with their commitment to delivering competitive power solutions for electrification, reinforcing their position in the market and supporting sustainable energy initiatives.

Tim Goyder, Chairman of Liontown Resources, expressed satisfaction in formalizing a strategic partnership with LG Energy Solution, a prominent battery producer globally. This alliance represents a pivotal achievement in Liontown's efforts to establish itself as a major supplier of battery minerals amid the global shift towards a sustainable, low-carbon future.