Australia's Liontown taps Metalshub for online Kathleen Valley lithium auctions

Nov 12 (Reuters) - Liontown Resources LTR.AX said on Wednesday it had partnered with German digital commodities platform Metalshub to run online auctions for spodumene concentrate from its Kathleen Valley lithium project in Western Australia.

Shares in the Australian lithium miner jumped as much as 5.7% to A$1.31 to their highest level since mid-2024 after the announcement, outperforming a 0.2% gain in the broader benchmark S&P/ASX 200 index .AXJO.

The tie-up is aimed at digitalising and streamlining spot sales, while promoting market-linked pricing as lithium producers and buyers adopt auction formats. The first 10,000 metric tons of digital sale from the project is slated for November 19.

Liontown said it plans a series of bidding events through 2026 and beyond on the Metalshub platform.

"Establishing a transparent, auditable and liquid price signal is crucial to a sustainable lithium industry," Chief Executive Tony Ottaviano said, adding the process should open competitive access to a wider pool of buyers.

Kathleen Valley produced its first concentrate in July 2024 and is powered by about 80% renewable energy, the company said. Liontown has offtake agreements with automakers, including Tesla TSLA.O and Ford Motor F.N.

In August, the Australian government invested A$50 million ($32.49 million) in Liontown to support the ramp-up and transition to underground mining at the Kathleen Valley project.

Spodumene concentrate is a feedstock for lithium chemicals used in electric-vehicle batteries, and efforts to standardise auction mechanisms have grown as the sector seeks clearer benchmarks and tighter linkage to market conditions.

($1 = 1.5389 Australian dollars)