Liontown–Canmax lithium offtake: pricing and volume signals for mine planners
Reviewed by Joe Ashwell

First reported on Australian Mining Review – News
30 Second Briefing
Liontown Limited has signed a 150,000 wmtpa offtake agreement for 2027–28 spodumene concentrate supply from its Kathleen Valley project in Western Australia with Canmax Technologies, with pricing tied to global spodumene concentrate indices. The deal follows Liontown’s first digitalised spodumene auction on 19 November, which drew more than 50 qualified buyers from nine countries and cleared SC6.0-equivalent product at $1892/dmt (US$1254/dmt). Liontown, which already has offtakes with LG Energy Solution, Tesla and Ford, saw its share price jump nearly 20% over the weekend.
Technical Brief
- Offtake tonnage is specified as 150,000 wet metric tonnes per annum of spodumene concentrate.
- Contracted delivery window is confined to calendar years 2027 and 2028, aiding mine scheduling.
- Pricing uses a formula indexed to global spodumene concentrate benchmarks rather than fixed or floor pricing.
- Canmax previously participated in Liontown’s 2025 institutional placement, effectively tying equity exposure to offtake security.
- Index-linked offtake plus platform-based spot sales creates a hybrid revenue model balancing price certainty and upside.
- More than 50 qualified buyers from nine countries engaged in Liontown’s first digital auction process.
- The auction-clearing price was quoted for SC6.0-equivalent material, implying quality-adjusted pricing in the sales platform.
Our Take
The winning SC6.0-equivalent price of US$1,254–1,892/dmt from the Kathleen Valley auction sits in the mid-range of recent lithium pieces in our database, signalling that high-quality Australian spodumene still commands a premium over marginal Chinese and African supply in long-term offtake discussions.
More than 50 qualified buyers from nine countries engaging with Liontown’s WA lithium output indicates that, among the 23 lithium-tagged items in our coverage, this project is attracting one of the broadest buyer pools, which should give Liontown additional leverage when negotiating future tranches beyond the Canmax offtake.
Canmax’s role as both offtaker and 2025 placement participant positions it alongside LGES, Tesla and Ford as part of a diversified demand book for Kathleen Valley, reducing single-buyer risk and likely supporting project financing terms compared with other single-counterparty offtake structures in Australia’s lithium space.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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