OIL - LG Energy Solution and Liontown Resources agree on long-term strategic partnership securing lithium supply chain and future growth opportunities | Benzinga
SEOUL, South Korea, July 2, 2024 /PRNewswire/ -- LG Energy Solution (KRX: 373220) and Liontown Resources Limited (Liontown) today entered into a strategic partnership aimed at fortifying their long-term collaboration in the global lithium sector.
The companies signed a convertible note subscription agreement, an extended offtake agreement for the supply of high-quality lithium spodumene from Liontown's Kathleen Valley project, and a downstream collaboration agreement to explore the feasibility of establishing a lithium refinery which has the potential for long-term value creation.
The partnership between LG Energy Solution and Liontown signifies a mutual commitment to advancing sustainable and stable lithium solutions globally and underscores the companies' shared commitment to innovation and value creation.
The agreement will be formalised at a ceremony scheduled to take place on July 4th at LG Energy Solution headquarters in Seoul, Korea.
Key terms of the Strategic Partnership: [1]
- Liontown extends LG Energy Solution's existing 5-year offtake agreement by an additional 10 years (15 years total). The agreement will now provide 700kt of spodumene concentrate over the first 5 years and 1,500kt spodumene concentrate over years 6 to 15 (in aggregate). This extension also includes a commitment to make up to 250kt spodumene concentrate available over the first 10 years (2.45Mt in total);
- Downstream collaboration agreement to commence feasibility studies to establish an IRA-compliant lithium refinery, aimed at processing spodumene from Kathleen Valley into ...