CEFC confirms landmark commitment to Kathleen Valley lithium project
Summary
Please note: Liontown and LG Energy Solution announced a strategic partnership in July 2024, aimed at fortifying their long-term collaboration in the global lithium sector. The CEFC investment its largest in the resources sector will back the development of low carbon lithium spodumene production, a critical input to the clean energy supply chain.The CEFC commitment is a part of a $550 million1 liquidity financing package from a syndicate of leading Australian and international financial institutions including the Commonwealths Export Finance Australia, Commonwealth Bank, National Australia Bank Limited and Soci\xe9t\xe9 G\xe9n\xe9rale. Australias export credit agency, Export Finance Australia, is also part of the syndicate and is providing a $120 million loan facility to the project.Located north of Kalgoorlie in the Eastern Goldfields of Western Australia, 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 for output in Australia.Design of the underground mine features a low carbon approach, including 46 MW of renewable energy generation and a 17 MW battery, allowing it to be powered by at least 60 per cent renewable energy from start-up.The project has secured substantial offtake agreements with three global foundation customers: Tesla, the Ford Motor Company and LG Energy Solution.CEFC Executive Director for WA and Resources, Rob Wilson said: Australia has an abundance of critical minerals and is already the worlds largest producer of spodumene.2 This important project has the potential to further shift the dynamics of lithium production in Australia while promoting leading sustainability practices in the mining sector.Liontown has committed to building a mining operation for the future, with 60 per cent renewable power and a biofuel-ready mine and transport fleet3. 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.Australia accounts for approximately half the worlds lithium supply,4 with hard rock mining of spodumene the dominant method of extraction in Australia providing the primary raw material for batteries.It is projected that the automotive sector will account for 87 per cent of all global lithium ion-battery demand in 20335. The CEFC capital has since been repaid, to be available for ongoing investment by the CEFC.For additional information on the role of the resources sector in the clean energy transition, refer to our report on Mining in a low emissions economy, co-developed with the Minerals Research Institute of Western Australia.