Liontown and China’s Canmax secure lithium deal

Liontown Limited (ASX: LTR) has signed an offtake agreement for 150,000wmtpa of spodumene concentrate with world-leading lithium manufacturer Canmax Technologies.

The agreement assures the supply of spodumene concentrate over 2027 and 2028 from Liontown’s Kathleen Valley project in WA.

Pricing will be based on a formula using global spodumene concentrate indices.

Liontown managing director and chief executive officer Tony Ottaviano comments on the deal.

“We are pleased to execute an offtake agreement with Canmax, one of the world’s leading lithium chemicals companies,” he said.

“Their participation in our 2025 institutional placement signalled strong confidence in the long-term potential of Kathleen Valley, and this offtake agreement reinforces their commitment.

“Securing sales linked to spodumene concentrate indices coupled with continuing our strategy of platform-based spot sales ensures we realise fair value for the products we produce.”

This follows Liontown’s announcement on November 19, introducing the digitalisation of spodumene concentrate auctions which attracted more than 50 qualified buyers from nine countries

Liontown says results from its first digital auction demonstrate a price improvement to the market with a winning bid of $1892/dmt (US$1254/dmt) for SC6.0-equivalent product.

Over the weekend, Liontown share prices have risen almost 20%.