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 battery-grade lithium
chemicals[2];
- LG Energy Solution will invest US$250
million (A$379
million[3]) through Convertible Notes. The
funding from LG Energy Solution will underpin the production
ramp-up of Liontown's world-class Kathleen Valley Project in
Western Australia. First
production of lithium spodumene concentration from Kathleen Valley is anticipated by the end of
July.
LG Energy Solution's Chief Executive Officer,
David Kim, said:
"The agreement represents another significant step in our value
chain investment strategy aimed at enhancing its resilience to
market uncertainties.
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."
Liontown Resources' Chairman, Tim
Goyder, said:
"Liontown is very pleased to formalise this strategic
partnership with LG Energy Solution, one of the world's leading
battery producers, marking a significant milestone in our journey
towards becoming a globally significant supplier of battery
minerals as the world transitions to a low-carbon future.
This partnership and investment is consistent with our
downstream refining strategy to capture the value of vertical
integration and deliver substantial value to our shareholders and
key stakeholders over the long term."
[This announcement has been approved for release by the Board of
Directors of Liontown Resources Limited]
# # #
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a
leading global manufacturer of lithium-ion batteries for electric
vehicles, mobility, IT, and energy storage systems. With 30 years
of experience in revolutionary battery technology and extensive
research and development (R&D), the company is the top
battery-related patent holder in the world with over 58,000
patents. Its robust global network, which spans North
America, Europe, and Asia, includes battery manufacturing
facilities established through joint ventures with major
automakers. Committed to building sustainable battery ecosystem, LG
Energy Solution aims to achieve carbon neutrality across its value
chain by 2050, while embodying the value of shared growth and
promoting diverse and inclusive corporate culture. To learn more
about LG Energy Solution's ideas and innovations, visit
https://news.lgensol.com.
About Liontown Resources
Liontown Resources (ASX:LTR) is an emerging Tier-1 battery
minerals producer. Our aim is to be an ESG leader and a globally
significant provider of battery minerals for the rapidly growing
clean energy market. As we transition from developer to producer,
we are committed to incorporating the right approach and foundation
from the outset and ESG principles underpin all decisions. We
currently control two major lithium deposits in Western Australia and aim to expand our
portfolio through exploration, partnerships and acquisitions. In
addition, we look to participate in downstream value-adding where
control of the deposit provides a strong competitive advantage. To
learn more, please visit: www.ltresources.com.au
[1] For further
information on the terms of the strategic partnership, please refer
to Liontown's ASX Announcement
[2] Subject to
separate investment decisions to approve execution of the refinery
and Kathleen Valley 4 Mtpa expansion
[3] Notes are
denominated in US$, A$ equivalent face value at 0.66 exchange
rate
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SOURCE LG Energy Solution