Liontown Resources has moved to broaden its commercial footing after confirming a new two-year offtake deal with China’s Canmax Technologies, increasing its future sales coverage for the Kathleen Valley lithium project as the market shifts into another competitive phase.
New Agreement Extends Liontown’s Sales Reach
Liontown said the binding deal covers 150,000 wet metric tonnes of spodumene concentrate, scheduled for delivery in 2027 and 2028. The contract uses a pricing formula tied to global spodumene indices, allowing the terms to move with prevailing market levels during the period.
Canmax, based in China, remains one of the largest buyers of raw lithium materials worldwide. The company manufactures lithium hydroxide and lithium carbonate for battery producers, giving it a central role in the supply chain that supports electric vehicle and storage demand globally.
Liontown described the partnership as complementary to its existing relationships with major customers already locked in for the Kathleen Valley operation. This new agreement continues its broader plan to spread sales across several regions and different stages of the battery value chain.
CEO Says Deal Reinforces Earlier Investment Support
Managing director and chief executive officer Tony Ottaviano said the agreement follows the strong interest shown by Canmax during Liontown’s 2025 institutional placement. He said the investment demonstrated steady confidence in Kathleen Valley’s long-term output and commercial potential.
Ottaviano added that sales tied to transparent index-linked formulas remain a central part of the company’s pricing structure. This approach gives Liontown another channel that can sit alongside its platform-based spot sales, which continue to attract interest from global buyers looking for traceable methods of price discovery.
He noted that working with a major battery materials producer offers Liontown another layer of market access as it looks to stabilise output planning across future years. The company also continues to expand exploration and evaluate additional growth paths near its existing deposits.
Spot Auction Provides More Market Signals
The new contract follows Liontown’s first online spot sale auction held last month through the MetalsHub platform. More than 50 qualified buyers from nine countries participated in the event. The auction covered 10,000 tonnes of spodumene concentrate and concluded with a winning bid of US$1,254 per dry metric tonne.
Liontown’s first online spot auction drew more than 50 qualified buyers from nine countries
Shipment for the auctioned material is scheduled for January 2026. The result gave Liontown what it described as a clear market reference for upcoming sales, adding another indicator for how buyers are valuing future supply.
Ottaviano said the strong turnout helped validate the company’s approach to digital spot sales. He said transparent auctions can support broader market participation and offer a clear record of pricing outcomes that customers can reference during negotiations.
Canmax Strengthens Its Long-Term Supply Position
Canmax remains a major producer of battery-grade lithium materials, supplying global technology companies and electric vehicle manufacturers. The company sources raw material from several regions, including Australia, South America, and parts of Africa, and has maintained a presence in the market despite ongoing pricing fluctuations.
Its agreement with Liontown marks another step in securing material for downstream processing as demand for lithium-based products continues to push suppliers to diversify their feedstock sources. The company’s selection of Kathleen Valley as a future supplier aligns with its practice of building long-term contracts with multiple miners.
Liontown said the partnership should provide both parties with predictable scheduling and better operational visibility, especially as Kathleen Valley advances towards broader production planning.
Kathleen Valley Remains Central to Liontown’s Plans
Kathleen Valley, located in Western Australia, is positioned as Liontown’s flagship project and remains one of the largest new lithium developments in the region. The company controls two major deposits and aims to scale output through a combination of mining expansion, customer agreements, and targeted investment.
Liontown is also assessing downstream opportunities where ownership of large resources could offer advantages during processing and supply negotiations. While these evaluations continue, the company remains focused on structuring a stable sales framework for the years ahead.
This latest agreement with Canmax strengthens future coverage and sits alongside Liontown’s broader approach to managing both contracted and spot-based supply routes.
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Company Maintains Broader Growth Strategy
Liontown continues to look toward exploration, partnerships, and potential acquisitions as it positions itself for the next phase of the lithium cycle. The company said its approach centres on balancing secure long-term contracts with flexible spot sales, allowing it to respond to shifting market conditions.
The agreement with Canmax adds another component to this plan, giving Liontown greater coverage for 2027 and 2028 while supporting its goal of reaching multiple international buyers across the value chain.
