Liontown Resources Pens Lithium Offtake Agreement with China's Canmax

Liontown Resources (ASX:LTR,OTC Pink:LINRF) has executed a binding offtake agreement with Chinese conglomerate Canmax Technologies (SZSE:300390) as part of its strategy to diversify its customer base.

“Listed on the Shenzhen Stock Exchange, Canmax is one of the world’s leading manufacturers of lithium-ion battery materials, including lithium hydroxide, lithium carbonate and other products and a key customer of several Australian and international material producers,” the company wrote in a Tuesday (December 9) release.

The agreement is for the supply of 150,000 wet metric tonnes per year of spodumene concentrate over two years in 2027 and 2028.

“(Canmax’s) participation in our 2025 institutional placement signalled strong confidence in the long-term potential of Kathleen Valley, and this offtake agreement reinforces their commitment,” Liontown Managing Director and CEO Tony Ottaviano.

The company said that pricing will be determined using a formula referencing spodumene concentrate and that it will continue its strategy of platform-based spot sales to ensure fair value for its products.

Kathleen Valley is Western Australia’s first underground lithium mine, with its plant reaching commercial production in January 2025.

According to Liontown’s latest quarter report, released on July 29, Kathleen Valley produced over 300,000 wet metric tonnes of spodumene concentrate during its first 11 months of operations.

The National Reconstruction Fund Corporation (NRF) invested AU$50 million in Liontown to support Kathleen Valley last August 2025, while a private investment from Canmax Technologies was dedicated to stabilising financing during weak prices.

The company added that its agreement with Canmax complements its existing arrangements with its Tier-1 customers.

In late November, Liontown announced that its first digital auction for spodumene concentrate attracted nine countries, securing a bid of US$1,254 per dry metric tonne.

Liontown shared in the November update that it remains on track to meet its 70 percent lithia recovery target by the end of the third quarter of 2026.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.