LG Energy Solution Converts US$250m Liontown Note into 8% Equity Stake

Liontown Resources Limited ( (AU:LTR) ) has provided an update.

Liontown Limited has announced that LG Energy Solution will convert its entire US$250 million convertible note, including accrued interest, into approximately 239 million Liontown shares, giving the Korean battery manufacturer an estimated 8% equity stake. The move retires the convertible note, cuts future interest costs and leaves Liontown with only its A$300 million Ford facility and a A$15 million Western Australian Government interest-free loan as borrowings, alongside A$390 million in cash, significantly simplifying its capital structure and strengthening its balance sheet. Management framed the conversion as a strong endorsement of the tier-one quality of the Kathleen Valley lithium project and Liontown’s execution, deepening LG Energy Solution’s role as both a cornerstone shareholder and long-term offtake customer, a strategic combination expected to enhance Liontown’s positioning in the battery materials supply chain as it scales production.

The most recent analyst rating on (AU:LTR) stock is a Sell with a A$1.70 price target. To see the full list of analyst forecasts on Liontown Resources Limited stock, see the AU:LTR Stock Forecast page.

More about Liontown Resources Limited

Liontown Limited is an ASX-listed responsible battery minerals provider focused on supplying essential minerals for the global energy transition. The company controls two major lithium deposits in Western Australia and seeks to grow its portfolio through exploration, partnerships and acquisitions, with an eye to participating in downstream value-adding where ownership of the deposit provides a competitive advantage.

Average Trading Volume: 23,231,471

Technical Sentiment Signal: Buy

Current Market Cap: A$6.44B

For detailed information about LTR stock, go to TipRanks’ Stock Analysis page.