News: LTR Australia's Liontown signs supply deal with S.Korea's LG Chem, shares jump

Jan 12 (Reuters) - Australian lithium miner Liontown Resources Ltd (LTR) said https://bit.ly/3r7epNv on Wednesday it signed a deal to sell lithium spodumene from its flagship project to the battery unit of South Korea's LG Chem, sending its shares soaring 13%.

LG Energy Solution, which counts Tesla Inc TSLA.O and General Motors Co GM.N as its customers, will buy 100,000 dry metric tonnes (DMT) of lithium spodumene — a key raw material for making electric vehicle batteries — from Liontown's Kathleen Valley project.

Liontown joins other lithium players in the country, like Vulcan Energy (VUL) , to strike major supply deals with EV makers as the sector assumes centre stage amid a global push by companies and governments towards a greener future.

The company also said the deal — a first for its Western Australia-based project — will account for nearly 30% of its annual output after year one of production and is expected to be operating from 2024.

Liontown added that it had received "strong interest from a range of parties in long-term offtake from the Kathleen Valley Lithium Project," without offering details.

Its shares witnessed their biggest jump since October 2021 on Wednesday, building on a nearly 5-fold rise in the past year.