LG Energy Solution, a manufacturer of lithium-ion batteries, and Liontown Resources, a battery minerals producer, have announced a partnership that seeks to build on the two companies’ ongoing work in the lithium sector.
The partnership will extend the offtake agreement between the two entities from 5 to 15 years and includes plans to investigate the feasibility of constructing an Inflation Reduction Act-compliant lithium refinery. The deal will provide LG with 700,000 tonnes of lithium spodumene concentrate over the first five years and 1.5 million tonnes for the remainder of the term.
“By partnering with strong players like Liontown, we will continue to secure stable supply of IRA-compliant critical minerals, fulfilling our efforts to provide competitive power solutions for electrification,” LG Energy Solution CEO David Kim said.
LG will also invest $250 million in Liontown through convertible notes to support the latter’s ramp-up of its Kathleen Valley Project in Western Australia, which is expected to produce its first lithium spodumene concentrate by the end of July.
Source: LG Energy Solution
