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Liontownresources
Case study

Liontown Resources low-carbon approach to lithium production

Clean energy mining supports clean energy supply chain

Kathleen Valley Lithium Project in Western Australia, which aims to be a globally significant provider of battery minerals, 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

Kathleen Valley will produce a battery material product essential for the global transition to a net zero future with a low carbon footprint. As a growing company who has put ESG at the forefront of our decision-making, the support of CEFC is a further validation of our credentials.
Tony Ottaviano
Managing Director and CEO, Liontown Resources

Our investment

Liontown is an ASX100 company with a focus on battery minerals, which is aiming to be an ESG leader in the resources sector and a globally significant provider of battery minerals for the clean energy market.

Its approach to its flagship Kathleen Valley Lithium Project involves best-in-class reporting aligned with Global Reporting Initiative Standards and Task Force on Climate-related Financial Disclosures.1 The CEFC has committed up to $110 million to provide liquidity to Liontown Resources through the completion and ramp up of its Kathleen Valley lithium project. The CEFC commitment is 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.

The CEFC investment helps strengthen Australia’s battery supply chain and follows on from its earlier investment in lithium when it invested in the development of the Pilbara Minerals Pilgangoora Project in Western Australia. The CEFC capital investment in Pilgangoora has since been repaid.

 

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. 

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.2

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.

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 Wilson
Executive Director for WA and Resources, CEFC

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.3



2 Liontown website

3 Australian Government, Department of Industry, Science and Resources, Office of the Chief Economist, Resources and Energy Quarterly, December 2023. p135.

 

 

Last updated March 2024. Western Australia, Transport, Resources, Renewable energy
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