Liontown secures $379m for Kathleen Valley ramp-up

Liontown Resources (ASX: LTR) has secured funding from LG Energy Solution to boost current lithium mining and explore the feasibility of establishing a lithium refinery in WA.

The agreement includes a five-year $379m (US$250m) convertible note, increasing total cash balance to about $501m to fund the Kathleen Valley, WA, ramp-up to 3mtpa steady state production.

Funding will progress early enabling works in the underground mine to preserve the 4mtpa expansion option on a 2027 timeframe and to support 3mtpa production.

The existing offtake agreement has also been extended by 10 years (15 years in total) with a downstream collaboration agreement to explore the feasibility of establishing an IRA-compliant lithium refinery.

Liontown managing director and chief executive Tony Ottaviano says this partnership is instrumental in supporting the production ramp-up and potential expansion.

“I am very pleased to announce that we have taken a major step forward in our strategic partnership with foundational customer LG Energy Solution, one of the world’s leading battery producers,” he said.

“LG Energy Solution’s long-term investment in Liontown is a testament to the world-class quality of the Kathleen Valley project and a tremendous endorsement of the capability of our team.

“These developments pave the way for Liontown to pursue our long-term strategy to be a globally significant provider of battery minerals as the world transitions to a low-carbon future.

“We believe this partnership and investment will deliver substantial value to our stakeholders and position us at the forefront of the lithium industry.”

The Kathleen Valley project remains on schedule and on budget for first production by the end of July.