Liontown Resources Limited announced that it has executed the binding Power Purchase Agreement with Australian independent power producer Zenith Energy Pty Ltd. (Zenith Energy) for the supply of power to the Kathleen Valley Lithium Project (Kathleen Valley) in Western Australia. The Power Purchase Agreement follows a competitive tender process and Letter of Award detailing key commercial terms, which was announced on 12 September 2022. Zenith Energy will finance, design, construct, own, operate and maintain a 95MW hybrid power station at Kathleen Valley (Hybrid Power Station) for an initial term of 15 years from commercial operation of the Hybrid Power Station, which is expected to coincide with the commissioning of the process plant in the first half of 2024.

The Hybrid Power Station will include wind generation from five wind turbines each capable of generating 6MW. A 16MWp fixed axis solar PV array coupled to a 17MW /19MWh Battery Energy Storage System (BESS) will provide additional clean energy, supported by highly reliable synchronous condensers that provide critical system stability and resilience. The thermal power component will comprise 27MW of gas generation and 5MW of diesel standby generation.

Zenith Energy has progressed the necessary planning, legal, engineering and design works, as well as placing orders for long lead items, each of which is required to facilitate the delivery of the Hybrid Power Station in line with the Kathleen Valley Project schedule. Liontown has secured approval for a $25 million guarantee facility from Export Finance Australia (EFA) as part of the security package under the Power Purchase Agreement, which will underpin the timely construction of the Hybrid Power Station at Kathleen Valley. Provision of the facility is subject to a number of conditions which are customary for facilities of this nature, and finalisation of facility agreements.

EFA is the Commonwealth of Australia's export credit agency. Liontown's Kathleen Valley Lithium Project has been identified as a critical minerals project under Austrade's Critical Minerals Prospectus.