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The brand of LG Chem is seen at its workplace constructing in Seoul, South Korea, October 16, 2020. REUTERS/Kim Hong-Ji

Jan 12 (Reuters) – Australian lithium miner Liontown Sources Ltd (LTR.AX)mentioned on Wednesday it signed a deal to promote lithium spodumene from its flagship mission to the battery unit of South Korea’s LG Chem, sending its shares hovering 13%.

LG Vitality Answer, which counts Tesla Inc (TSLA.O) and Basic Motors Co (GM.N) as its prospects, will purchase 100,000 dry metric tonnes (DMT) of lithium spodumene — a key uncooked materials for making electrical car batteries — from Liontown’s Kathleen Valley mission.

Liontown joins different lithium gamers within the nation, like Vulcan Vitality (VUL.AX), to strike main provide offers with EV makers because the sector assumes centre stage amid a world push by firms and governments in the direction of a greener future.

The corporate additionally mentioned the deal — a primary for its Western Australia-based mission — will account for almost 30% of its annual output after yr considered one of manufacturing and is predicted to be working from 2024.

Liontown added that it had acquired “sturdy curiosity from a variety of events in long-term offtake from the Kathleen Valley Lithium Venture,” with out providing particulars.

Its shares witnessed their largest leap since October 2021 on Wednesday, constructing on an almost 5-fold rise prior to now yr.

Reporting by Savyata Mishra in Bengaluru; modifying by Uttaresh.V

Our Requirements: The Thomson Reuters Belief Ideas.