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KUALA LUMPUR, Jan 12 -- Liontown Resources Limited (Liontown or the Company) has signed foundational binding Offtake Term Sheet with premier global battery maker LG Energy Solution (LGES).
Cornerstone offtake agreement provides strong market validation for the product quality and Tier-1 jurisdiction credentials of Liontown's Kathleen Valley Lithium Project, according to a statement.
Among the highlights, Binding Lithium Spodumene Concentrate Offtake Term Sheet signed with South Korean-based LGES. Foundation agreement underpins the development of Liontown's A$473 million Kathleen Valley Lithium Project in Western Australia. (A$1 = RM3.01)
Initial five-year term expected to commence in 2024, with the ability to extend for a further five years.
In addition, LGES to purchase 100,000 dry metric tonnes (DMT) in the first year, increasing to 150,000 DMT per year in subsequent years.
Meanwhile, pricing determined using a formula-based mechanism referencing market prices for Lithium Hydroxide Monohydrate.
The landmark Offtake Term Sheet is strongly aligned with Liontown's offtake strategy, which is targeting Tier-1 customers downstream in the global battery value chain.
Negotiations continue with several Tier-1 customers that will complement Liontown's offtake strategy of establishing a diverse portfolio of high-quality customers, defined both by geographic location and position within the global battery value chain.
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