Liontown to Deliver 300,000 Wet Metric Tonnes of Spodumene to Canmax by 2028
Liontown Limited has inked a binding two-year offtake agreement with Canmax Technologies for 150,000 wet metric tonnes of spodumene concentrate annually in 2027 and 2028, reinforcing its foothold in the lithium supply chain.
- Binding offtake agreement with Canmax Technologies executed
- Supply of 150,000 wet metric tonnes of spodumene concentrate per year for 2027 and 2028
- Pricing linked to spodumene concentrate market indices
- Deal diversifies Liontown’s customer base geographically and along the battery value chain
- Canmax’s prior investment signals strong confidence in Kathleen Valley project
A Strategic Partnership in Lithium Supply
Liontown Limited (ASX, LTR) has formalised a significant supply agreement with Canmax Technologies Co., Ltd., a major player in lithium chemicals manufacturing. The binding offtake agreement commits Liontown to deliver 150,000 wet metric tonnes of spodumene concentrate annually over two years, specifically in 2027 and 2028. This deal not only secures a steady revenue stream for Liontown but also strengthens its position in the competitive lithium market.
Pricing Aligned with Market Realities
The pricing mechanism for this agreement is formula-based, referencing spodumene concentrate indices. This approach ensures that Liontown’s returns will reflect prevailing market conditions, providing a fair valuation for its product. Such index-linked pricing is increasingly common in commodity contracts, offering transparency and alignment with global lithium demand trends.
Diversification and Confidence
Canmax, listed on the Shenzhen Stock Exchange, is a leading manufacturer of lithium-ion battery materials, including lithium hydroxide and lithium carbonate. Their participation in Liontown’s 2025 institutional placement demonstrated early confidence in the Kathleen Valley project, and this offtake agreement further cements their commitment. For Liontown, the deal complements existing contracts with Tier-1 customers and supports a strategy to diversify its customer base both geographically and along the battery value chain.
Implications for Kathleen Valley and Beyond
Located in Western Australia, Kathleen Valley is Liontown’s flagship lithium deposit. Securing long-term supply agreements like this one with Canmax is critical to underpinning the project’s commercial viability and attracting further investment. While the agreement covers deliveries starting in 2027, it signals market confidence in Liontown’s ability to ramp up production and meet global lithium demand, which is expected to grow as electric vehicle adoption accelerates.
Looking Ahead
With this agreement in place, Liontown is well-positioned to capitalize on the evolving lithium market. The company’s focus on responsible mining and strategic partnerships could enhance its reputation and market standing. However, the actual pricing and delivery performance will be closely watched by investors as the contract period approaches.
Bottom Line?
Liontown’s deal with Canmax marks a pivotal step in securing its lithium supply future amid growing global demand.
Questions in the middle?
- How will fluctuations in spodumene concentrate indices affect Liontown’s revenue from this deal?
- What are the operational milestones Liontown must achieve to meet the 2027 delivery schedule?
- Could this partnership lead to deeper collaboration or downstream processing ventures between Liontown and Canmax?
