Liontown Resources has taken a significant step forward in our downstream strategy through an agreement with Sumitomo Corporation. Together, we plan to explore the development of a lithium supply chain between Australia and Japan.

The partnership will support a jointly funded study that explores the feasibility of using Liontown’s spodumene, or a future lithium sulphate produced in a Western Australia based plant, to produce lithium hydroxide in Japan. The non-binding study, expected to span over two years, has the potential to be a key driver in supporting the world’s transition to a low-carbon future.

As a Fortune Global 500 company, with extensive exposure to global net zero industries, Sumitomo brings a unique skillset that will be instrumental in exploring the development of downstream lithium hydroxide refining, both within Australia and beyond its borders.

The long life and quality of Kathleen Valley provides Liontown with an opportunity to unlock further value through becoming an integrated producer and refiner of lithium products. The resource would underwrite up to approximately 86ktpa of battery grade lithium hydroxide production.

The Japanese Ministry of Economy, Trade, and Industry has already given its pre-approval for the joint study partnership and has offered assistance in engaging local stakeholders, further strengthening the project’s foundations. Future phases of the study or the project development may also receive a subsidy from the Japanese Ministry of Finance, further boosting its prospects.

Actively investigating the potential of upgrading our spodumene from Kathleen Valley to higher value lithium products is part of our strategy for creating long-term value for our shareholders and investors.