The NRFC has made a $50 million in Liontown Resources (Liontown) that will be used to support the ramp up and underground transition of its Kathleen Valley Lithium Operation. The investment will also help Liontown to attract additional private capital as part of its $266 million institutional placement.
The NRFC’s investment will help to build Australia’s industrial capacity and unlock further value in the critical minerals supply chain by supporting the production and processing of lithium, a critical mineral that is central to decarbonisation efforts due to its use in the production of lithium-ion batteries for electric vehicles (EVs).
About Liontown Resources
Liontown is an ASX-listed (ASX: LTR) lithium producer and refiner based in Western Australia. Liontown’s flagship project is the Kathleen Valley Lithium Operation, which is located 680 km north-east of Perth.
Kathleen Valley commenced production of spodumene concentrate on 31 July 2024, and is one of Australia’s largest and most advanced lithium projects. The project is expected to produce 500,000 tonnes of spodumene concentrate per annum over the next several decades, with the potential to expand the project in the future.
Kathleen Valley employs more than 300 people in Western Australia and generates additional local economic activity in the surrounding region through its complex local supply chain of regional businesses.
Liontown is a key supplier of lithium to some of the world’s leading vehicle and battery manufacturers, including Tesla, Ford, and LG Energy Solutions.
Investment impact
Supply chain resilience
Global lithium consumption has tripled since 2016 due to the growth of the EV market, with approximately 87% of the world’s lithium used in EV batteries. The NRFC’s investment helps to ensure Australia’s access to this critical mineral and sets us up as a long-term supplier of lithium to the rest of the world.
Decarbonising the economy
Lithium is a key input material in the batteries used to power EVs. By providing this critical resource to EV and battery manufacturers, Liontown is contributing to significant emissions reduction in the transport and energy sectors.
Growing industrial capability
The Kathleen Valley Lithium project is a world-class lithium project and a significant and long-term resource for Australia and our trading partners. While the current focus is on the ramp up of mining and spodumene processing, the scale and quality of the asset means there is future potential for Liontown to move further downstream in the lithium product supply chain.
Crowding in finance
The NRFC’s $50 million investment is a cornerstone in Liontown’s $266 million institutional placement. The investment will help Liontown to attract additional private capital as it continues to operate and potentially expand its lithium production and refining operations.
Advancing regional development
The Kathleen Valley Lithium Project has produced significant economic benefits for local businesses in regional Western Australia. This includes the establishment of a complex local supply chain that utilises regional businesses and several competitive contracts being awarded to local Indigenous businesses.