Liontown Resources has taken a major step towards the development of its flagship Kathleen Valley Lithium Project in Western Australia after executing its first binding offtake term sheet with one of the world’s premier battery manufacturers, LG Energy Solution (LGES).
According to Liowntown’s statement, the agreement with South Korean-based LGES is for the supply of up to 150,000 dry metric tonnes (DMT) per annum of spodumene concentrate produced at Kathleen Valley expected to commence in 2024, representing “approximately one-third of the Project’s start-up SC6.0 production capacity of ~500ktpa”.
LGES manufactures lithium-ion batteries for electric vehicles (EV), mobility and IT applications, as well as energy storage systems (ESS).
The company is a major EV battery supplier for leading global automakers and is actively expanding its business amid the growing demand for lithium-ion batteries from the EV sector globally.
Liontown’s Managing Director and CEO, Tony the Offtake Term Sheet with LGES was the first offtake arrangement secured for Kathleen Valley and represents a significant milestone for Liontown and its offtake strategy.
“The signing of this historic first Offtake Term Sheet for Kathleen Valley represents
a fantastic outcome for our shareholders and marks a very satisfying result for the Liontown Board and team,” Mr Ottaviano said.
“Not only is this Offtake Term Sheet consistent with our strategy, it also represents a strong validation for the Tier-1 credentials of the Kathleen Valley Project as one of the world’s premier new spodumene projects.
“Having a customer of the calibre and standing of LGES endorse the Project, by signing up to become a foundation customer, represents a significant vote of confidence in
Kathleen Valley and in Liontown’s ambition to become a globally significant provider of battery materials for the clean energy market.”
“We are very pleased to have reached an agreement with LGES, a respected global leader in the lithium battery value chain, and look forward to working with them as long-term partners for many years to come.”