Liontown Resources has officially opened its Kathleen Valley lithium operation in Western Australia’s northern Goldfields, marking a major milestone as Australia’s first underground lithium mine.
The project is poised to become a globally significant, long-life source of lithium, a mineral critical to the booming battery and electric vehicle industries.
The Kathleen Valley operation stands out not only for its scale but also for its strategic partnerships.
Liontown has secured offtake agreements with some of the world’s leading electric vehicle and battery manufacturers, including Tesla, Ford, LG Energy Solution, and Beijing Sinomine.
These deals guarantee demand for most of the project’s initial production and position Liontown as an emerging force in the global lithium supply chain.
Open pit mining at Kathleen Valley commenced in July 2024, with the transition to underground production beginning in April 2025.
The company aims to achieve full underground mining by September 2026.
This underground approach offers substantial advantages, such as minimal waste removal and reduced contamination of the mined ore, enhancing both the efficiency and environmental profile of the operation.
Liontown has also advanced its geological understanding of the site, successfully drilling two new holes with support from the Exploration Incentive Scheme.
This work has helped refine knowledge of the resource beyond previously known boundaries.
Mines and Petroleum Minister David Michael, who attended the formal opening, praised the project’s impact on the region and the broader industry.
“I would like to congratulate Liontown on opening the landmark Kathleen Valley lithium project, which is attracting skilled workers and strengthening local development,” he said.
The Minister highlighted the significance of the lithium sector, stating: “The Cook Government is proud to support Western Australia’s lithium sector — a major employer, a key contributor to the state’s economy and an essential part of the global transition to clean energy.”
Support for the project has included a $15 million interest-free loan through the state’s $150 million Lithium Industry Support Program, as well as a waiver of port fees and mining tenement charges for up to 24 months to assist during the ramp-up phase.
Minister Michael also noted the importance of collaboration with local communities: “The Cook Government also welcomes the continuing strength of the relationship between Liontown and the Tjiwarl Traditional Owners since the Native Title Agreement was signed in 2021.”
As global demand for battery minerals continues to surge, the Kathleen Valley project is set to play a pivotal role in ensuring supply chain resilience and supporting the clean energy transition.
