Liontown Resources (ASX:LTR) has completed negotiations with LG Energy Solutions (LGES), and executed its first offtake agreement for the supply of spodumene concentrate from its Kathleen Valley lithium project in Western Australia.
The agreement with South Korean-based LG is consistent with its announcement in January, which includes the supply of up to 150,000 dry metric tonnes per annum of spodumene concentrate.
The initial 5-year term is expected to commence in 2024, with the ability to extend for a further five years. Liontown said the deal with LGES marks another key milestone for Kathleen Valley, following the deal with EV manufacturer Tesla for the supply of up to 150,000 DMT per annum.
“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 per cent of our production,” said chief executive officer Tony Ottaviano.
“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 LGES, a respected global leader in the lithium battery value chain.”
Shares in Liontown Resources (ASX:LTR) are trading 2.3 per cent lower at $1.43.