Liontown Ltd. has approved a final investment decision for a AU$389 million expansion of its Kathleen Valley lithium operation in Western Australia, lifting steady-state spodumene concentrate production by over 50 per cent.
The expansion project will increase ore processing capacity from 2.8 million tonnes to 4.2 million tonnes per annum.
This will lift steady-state spodumene concentrate production to a targeted five-year average of roughly 780,000 dry metric tonnes (dmt) annually from fiscal 2030, with peak output expected to exceed 800,000 dmt in 2034.
The board’s approval triggers major upgrades across both mining and processing infrastructure. Mining works will receive AU$145 million to accelerate underground development at Kathleen’s Corner, complementing existing operations at Mount Mann.
A further AU$244 million is allocated to process plant expansion, which includes adding a second ball mill, upgrading the magnetic and flotation circuits, and enhancing site power, water, and accommodation facilities.
Liontown expects the expansion to deliver significant cost efficiencies, driving targeted steady-state unit operating costs down to between AU$840 and AU$920 per dmt.
Forecasts indicate a 2.5-year payback period following the end of construction, which is scheduled for completion by the end of the second quarter of fiscal 2029.
“This expansion is capital efficient with one of the lowest capital costs per tonne among recent brownfield lithium projects and will be fast to market,” said Liontown Managing Director and CEO Tony Ottaviano.
“When the expansion is completed, it gives Kathleen Valley a scale that positions Liontown for sustained performance through the cycle, not just in the good years.”
The company maintained its fiscal 2027 production and unit operating cost guidance but increased its total capital expenditure guidance to include the needed capital for the expansion. Total capital expenditure is now expected at AU$436 million to AU$496 million from the previous AU$320 million to AU$370 million.
The company plans to fund the development through its existing cash balance of AU$561 million and ongoing operating cash flow.
The project will generate an estimated 210 construction jobs and 185 ongoing operational roles.
Additional production volumes remain uncommitted, offering Liontown flexibility to secure new spot sales or long-term offtake agreements.
