LG Energy Solution (LGES) and Liontown Resources have deepened their strategic partnership in the lithium sector. The expansion of the collaboration includes several agreements to increase production capacity and secure lithium supply.
2.2 million tons of spodumene concentrate
Part of the deal is the extension of an existing five-year offtake agreement for an additional ten years. Over the total period of 15 years, 2.2 million tons of spodumene concentrate are to be supplied to LGES. Furthermore, Liontown has committed to supply up to an additional 250,000 tonnes of spodumene concentrate in the first ten years. The companies also plan to conduct feasibility studies for the construction of a lithium refinery with the objective is to process spodumene concentrate from the Kathleen Valley project in Western Australia into battery-grade lithium chemistry. The goal is to meet the requirements of the US Inflation Reduction Act.
LG investing 250 million dollars in Liontown Resources
In addition, LG Energy Solution announced that it will invest 250 million US dollars in Liontown Resources to support the Kathleen Valley Projectʼs production ramp-up. The plant is projected to reach an annual capacity of three million tons. The company expects production to begin by the end of July 2024.
