PERTH (miningweekly.com) – Lithium developer Liontown Resources has inked a binding offtake agreement with South Korean-based LG Energy Solutions to provide, enacting a term sheet signed earlier this year.
Under the terms of the agreement, LG will purchase 100 000 t of spodumene concentrate from the Kathleen Valley operation in the first year, increasing to 150 000 t/y over the remaining four years of the five-year offtake term, which is expected to start in 2024.
The offtake agreement covers nearly one-third of Kathleen Valley’s expected start-up production capacity of some 500 000 t/y, Liontown told shareholders.
“We are delighted to have concluded negotiations with LG Energy Solution allowing us to execute our first full form spodumene concentrate offtake agreement for up to 30% of our production. This establishes the foundation for a long- term partnership and we are proud that we will be supplying lithium from the Kathleen Valley project to LG Energy Solutions, a respected global leader in the lithium battery value chain,” said Liontown MD and CEO Tony Ottaviano.
The offtake agreement with LG Energy Solutions followed an earlier one with electric vehicle manufacturer Tesla, for the supply of up to 150 000 t/y of spodumene concentrate, also starting from 2024.