LG Energy Solution converts $250m note into Liontown equity
Battery minerals producer Liontown said on Thursday that strategic partner LG Energy Solution had elected to convert its entire $250-million convertible note into about 239-million fully paid ordinary shares.
Following completion of the transaction, LG Energy Solution is expected to hold about 8% of Liontown’s issued share capital.
The original conversion price was A$1.80 a share, but this was adjusted to A$1.62 a share after Liontown’s August 2025 capital raising, in line with the note’s adjustment provisions.
Liontown said the conversion would eliminate the convertible note and associated future interest costs, simplifying the company’s capital structure and improving balance sheet flexibility.
After the conversion, the company’s remaining borrowings will comprise the A$300-million Ford facility, excluding capitalised interest, and the Western Australian state government’s A$15-million interest-free loan.
The company also reported cash at bank of A$390-million at December 31, 2025.
MD and CEO Tony Ottaviano said the move was an endorsement of LG Energy’s confidence in Kathleen Valley’s Tier 1 quality.
“This conversion delivers immediate benefits to shareholders. It simplifies our capital structure, eliminates future interest obligations on the notes, and strengthens our balance sheet — giving us real financial firepower as we scale production, while remaining focussed on shareholder returns and disciplined capital allocation.
“Importantly, it deepens an already important strategic partnership with LG Energy Solution. LG Energy Solution was instrumental in supporting our transition to producer, and their decision to become a significant equity holder further aligns our interests. We now have one of the world’s leading battery manufacturers as both a cornerstone shareholder and a long-term offtake customer — a powerful combination as we execute on Liontown’s full potential.”