Liontown Resources low-carbon approach to lithium production
Clean energy mining supports clean energy supply chain
The Kathleen Valley Lithium Project in Western Australia is taking a low-carbon approach to lithium production by harnessing renewable energy for up to 60 per cent of its power needs.
$110 million
CEFC commitment
Low-carbon
lithium
60%
renewable power
Liontown has committed to building a mining operation for the future, with 60 per cent renewable power and a biofuel-ready mine and transport fleet. Its substantial investments in renewable energy and low carbon mining and processing demonstrate the potential to reduce the carbon intensity of our resource sector, with Australia capturing a greater proportion of the lithium value chain.Rob WilsonExecutive Director for WA and Resources, CEFC
Our investment
Liontown is an emerging Tier 1 battery minerals producer which is aiming to be a globally significant provider of battery minerals for the rapidly growing clean energy market.
The CEFC committed up to $110 million to Liontown in March 2024, to provide liquidity for the completion and ramp up of the Kathleen Valley Lithium Project – a battery metals asset with an expected mine life of more than 20 years.
The CEFC commitment was part of a $550 million financing package from a syndicate of leading Australian and international financial institutions including Export Finance Australia, Commonwealth Bank, National Australia Bank Limited and Société Générale.
LG Energy Solution and Liontown announced a strategic partnership in July 2024, aimed at fortifying their long-term collaboration in the global lithium sector. The strategic partnership included:
- a US$250 million (A$379 million) convertible note subscription agreement
- an extended offtake agreement for the supply of high-quality lithium spodumene from Kathleen Valley
- a downstream collaboration agreement to explore the feasibility of establishing a lithium refinery which has the potential for long-term value creation.
Read the Liontown ASX statement.
As a result of this agreement, the CEFC commitment was not required.
our impact
Accelerating lithium supply
Australia’s battery supply chain has a crucial role to play in our transition to a net zero economy.
Lithium is one of several key minerals that will underpin the global energy transition and Australia has approximately half the world’s lithium supply.1
The greenfield Kathleen Valley Lithium Project is forecast to produce about 500 kt of six per cent spodumene concentrate annually, placing it among the largest lithium mines by output in Australia.
A low-carbon approach
Located north of Kalgoorlie in the Eastern Goldfields of Western Australia, the underground mine will access 46 MW capacity of renewable energy generation and a 17 MW battery.
Global demand for local product
The project has secured substantial offtake agreements with three global foundation customers: Tesla, the Ford Motor Company and LG Energy Solution. The five-year agreements are expected to commence with production, with an option to extend the LG Energy Solution and Ford contracts for a further five years by mutual agreement. Liontown offtake commitments of up to 450,000 dry metric tonnes per annum represent about 90 per cent of the mine’s start up production capacity.2
1 Australian Government, Department of Industry, Science and Resources, Office of the Chief Economist, Resources and Energy Quarterly, December 2023. p135.
