Liontown Resources plans lithium battery chemicals refinery

Battery Materials producer Liontown Resources has secured investment from lithium battery manufacturer LG Energy Solution backing its Kathleen Valley lithium facility in Western Australia (pictured).

The investment via a five year convertible note also extends work with the Korean company to a study of a possible refinery to add value to the metal.

The company said LG would also provide an extension of 10 years to its initial five year offtake agreement, while collaborating to explore the feasibility of processing spodumene ore into battery-grade lithium chemicals in WA.

Liontown’s Managing Director and CEO, Tony Ottaviano 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.

“The funding will be instrumental in supporting the production ramp up to 3Mtpa and early works necessary to preserve the potential 4Mtpa expansion case for Kathleen Valley.

“In addition, I am pleased to announce that the strategic partnership with LG Energy Solution will also include entering into a new downstream collaboration agreement to investigate the establishment of an IRAcompliant lithium refinery.”

The companies said they will commence feasibility studies to evaluate site selection, economic viability, and sustainability considerations.

Liontown said this underscored the company’s commitment to sustainable growth and value creation.

The collaboration, coupled with Liontown’s existing downstream pre-feasibility with Sumitomo Corporation which continues in parallel, is consistent with the company’s stated strategy to extract maximum value through vertical integration in the battery value chain.

Ottaviano said: “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.”

Further reading:
Liontown Resources progress lithium concentrate production

Picture: Liontown Resources/news/Works underway at Kathleen Valley, WA