Australian lithium developer Liontown Resources has secured investment of up to A$110mn ($73mn) from the state-backed Clean Energy Finance Corporation (CEFC) for the final phase of its Kathleen Valley project in Western Australia (WA).
The CEFC commitment, part of a A$550mn liquidity financing package from a group of Australian and global financial firms, will be used to fund the completion and implementation of the project, supporting the development of low-carbon lithium spodumene production and Australia's critical mineral supply chain.
"This investment strengthens Australia's battery supply chain, which has a crucial role to play in our acceleration towards a net zero economy," said CEFC's executive director for WA and resources Rob Wilson. "Lithium is one of several key minerals that will underpin the global energy transition and is becoming a major export earner for Australia."
The project is expected to become one of Australia's largest lithium mines, aiming to produce its first lithium concentrate in mid-2024 before increasing to 500,000 t/yr and subsequently expanding to 700,000 t/yr. The lithium concentrate output will be supplied to Liontown's offtake partners US auto manufacturers Tesla and Ford, along with South Korean battery manufacturer LG Energy Solution.
A debt funding package to Liontown was terminated earlier this year on a weak spodumene outlook with spodumene prices hovering below $1,000/t. Argus-assessed prices for 6pc grade spodumene fob Australia were $899-1,029/t on 12 March, down by 80pc from $5,038-5,188/t a year earlier.
