LG Energy’s $250 million financing to Liontown

Australia’s Liontown Resources Ltd. has received $250 million in financing from leading global battery maker LG Energy Solution Ltd. for its massive new lithium mine.

Under a deal announced Tuesday that sent Liontown’s shares soaring as much as 17 percent, South Korea’s LG agreed to add 10 years to its existing five-year purchase agreement for a portion of production from the Kathleen Valley project. The two companies will also consider jointly building a refinery.

Liontown also has purchase agreements with Tesla Inc. and Ford Motor Co. “These developments pave the way for Liontown to pursue our long-term strategy of becoming a globally significant provider of battery minerals,” Liontown Chief Executive Tony Ottaviano said in a statement.

The partnership follows a challenging period for the Australian firm after US lithium producer Albemarle Corp. withdrew from a takeover bid. Liontown had said in September 2023 that it was ready to support a new 6.6 billion Australian dollars ($4.3 billion) takeover bid by Albemarle Corp., the world’s largest battery metal producer headquartered in the United States.