Liontown Resources (ASX:LTR) has executed a binding offtake agreement with Canmax Technologies Co., Ltd, a major industrial conglomerate and one of the world’s leading producers of lithium chemicals and consumer of raw lithium material.
Under the Offtake Agreement, Liontown will supply 150,000 wet metric tonnes (“wmt”) per year of spodumene concentrate to Canmax over a 2-year period covering 2027 and 2028. Pricing for the material will be determined using a formula that references prevailing spodumene concentrate indices.
Liontown’s Managing Director and CEO, Tony Ottaviano, said, “We are pleased to execute an Offtake Agreement with Canmax, one of the world’s leading lithium chemicals companies. Their participation in our 2025 institutional placement signalled strong confidence in the long-term potential of Kathleen Valley, and this Offtake Agreement reinforces their commitment. Securing sales linked to spodumene concentrate indices coupled with continuing our strategy of platform based spot sales ensures we realise fair value for the products we produce.”
Diversifying customer base
The agreement complements Liontown’s existing arrangements with its Tier-1 customers and forms part of the company’s broader strategy to diversify its customer base by geography and across different segments of the battery value chain.
Canmax, which is listed on the Shenzhen Stock Exchange, is one of the world’s leading manufacturers of lithium-ion battery materials, producing lithium hydroxide, lithium carbonate and related products, and is a key customer of several Australian and international raw material suppliers.