Battery Giant LG Energy Backs Major New Australian Lithium Mine

Australia’s Liontown Resources Ltd. won $250 million of funding for its big new lithium mine from major battery producer LG Energy Solution Ltd., even as the metal’s price rout deepens and other projects are abandoned.

Under a deal announced Tuesday that sent Liontown’s shares soaring as much as 17%, South Korea’s LG agreed to add 10 years to its existing five-year offtake deal for a portion of output from the Kathleen Valley project. The two companies will also jointly consider building a refinery.

The partnership follows a challenging period for the Australian firm, after US lithium producer Albemarle Corp. ...