A Tesla Model Y charges at a EV charge station in Lane Cove in Sydney, Australia, on Jan. 19, 2021. Brendon Thorne/Getty Images
Chinese battery materials manufacturer Canmax Technologies has invested $50 million in Liontown Resources matching a federal government pledge a day earlier.
The Canmax announcement was revealed on Aug. 8 for the company’s flagship Kathleen Valley Lithium Project in Western Australia.
The placement, which includes new shares priced at $0.73 each, is subject to shareholder approval and clearance from Chinese regulators.
Liontown in a statement to Australian Stock Exchange said the investment signals strong confidence in the long-term potential of Kathleen Valley, a key lithium development located in the Goldfields-Esperance region.
Canmax, founded in 1997 and listed on the Shenzhen Stock Exchange since 2014, is one of the world’s top producers of lithium-ion battery chemicals and a major buyer of lithium raw materials. In 2023, it was ranked among China’s top 500 private manufacturers.
On Aug. 7, the Albanese Labor government revealed it would pump $50 million into the project from the National Reconstruction Fund Corporation (NRFC).
Lithium, a key input for electric vehicle and energy storage batteries, is central to increasingly tech-reliant societies.
Global consumption has tripled since 2016, with roughly 87 percent of the world’s lithium now used in EV batteries amid the net zero push, according to government figures.
$316 Million Capital Raise Secured
The Canmax placement is part of a wider capital raise worth $316 million, including a fully underwritten institutional placement of approximately $266 million, which attracted domestic and offshore investors.
CEO Tony Ottaviano said the response reflected strong market confidence despite challenging conditions.
“This capital raising fortifies our balance sheet, supports the ramp-up and transition to 100 percent underground operations, and ensures we’re well positioned to capitalise on a recovery in lithium prices,” Ottaviano said.
According to Liontown, about 84 percent of the total funds raised came from institutional sources, including sovereign and international investors.
Eligible shareholders will also be offered the opportunity to invest through a share purchase plan, with a target of raising an additional $20 million.
