Lithium player Liontown Resources (ASX:LTR)
has unveiled its latest deal with South Korean-based LG Energy Solution to supply up to 150,000 dry metric tonnes per annum of spodumene concentrate, an ingredient to make batteries for electric vehicles.
LG will purchase 100,000 dry metric tonnes in the first year, increasing to 150,000 dry metric tonnes per year in subsequent years. The offtake agreement with LG is the first offtake arrangement secured for Kathleen Valley in Western Australia.
"We have been steadfast in our strategy to negotiate terms that we believe accurately reflect the significance of our position in the global lithium market, as well as the quality and location of our Kathleen Valley resource to ensure that we extract the best value for our shareholders,” said Liontown’s chief executive Tony Ottaviano.
“We are very pleased to have reached 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.”
Shares in Liontown Resources (ASX:LTR)
are trading 2.6 per cent higher at $1.59.