LG Energy Solution to Exit Liontown Stake as Discounted Share Sale Lifts Australian Miner’s Stock

BY COMFORT OGBONNA

Under the terms outlined in a deal sheet, the transaction will see LG Energy Solution fully exit its position in Liontown Resources, ending its role as a shareholder in the Australian lithium developer. The move marks a notable shift in the ownership structure of Liontown, a company closely watched by investors due to its exposure to the fast-growing electric vehicle battery materials market.

Liontown’s shares surged 9.37% on Wednesday to close at A$1.98, reflecting strong investor reaction to the development. Despite the rally, the shares involved in the block trade are being sold at a discount estimated between 9.8% and 11.8% to the latest closing price. Such discounts are common in large institutional placements, where sellers offer shares below market value to ensure swift execution and attract buyer interest.

The stock has performed strongly this year, climbing 26% so far in 2026, supported by optimism around lithium demand and broader momentum in the battery supply chain. Liontown’s flagship Kathleen Valley lithium project in Western Australia has positioned the company as a key potential supplier to global electric vehicle manufacturers and battery producers.

Prior to the sale, LG Energy Solution ranked as Liontown’s third-largest shareholder. The company stood behind Hancock Prospecting, the private mining investment firm controlled by Australian billionaire Gina Rinehart, and Liontown chairman Tim Goyder. The reshuffling of major shareholders could influence perceptions of strategic alignment and long-term backing, particularly in a sector where partnerships between miners and battery manufacturers are seen as critical.

The final sale price for the shares is expected to be determined later on Wednesday, according to the term sheet. Citigroup is acting as the sole bookrunner for the block trade, managing the placement process and coordinating demand from institutional investors.

LG Energy Solution’s decision to divest its stake comes at a time of evolving dynamics in the global lithium and battery markets, where pricing volatility and shifting supply-demand expectations have prompted companies to reassess investments and partnerships. The outcome of the placement and the identity of incoming investors will likely be closely monitored for signals about confidence in Liontown’s long-term prospects.

LG Energy Solution and Liontown had not responded to requests for comment at the time of reporting.