Liontown Lithium Output Surges as Underground Operations Accelerate

Liontown Lithium

Australia's Liontown Resources has increased its lithium output by 12% in the first quarter of 2025, reaching 95,709 tonnes of spodumene concentrate. This marks a significant leap from the previous quarter and supports its ambitious transition to full underground mining by early 2026.

Liontown Hits Q1 Production Milestone

Liontown’s Kathleen Valley mine saw spodumene output rise from 85,698t in October–December 2024 to 95,709t in January–March 2025. This growth reflects the mine’s ramp-up phase, as it produced nothing during the same period a year ago. To meet its semiannual target of 170,000–185,000t, Liontown must deliver at least 74,291t in the current quarter.

Shipments also climbed 16% quarter-over-quarter to 93,940t. With a current stockpile of 1.3 million tonnes and 23,000t of saleable concentrate ready, Liontown is well-positioned to sustain production through its upcoming underground transition.

Strategic Stockpile Supports Transition to Underground Mining

Underground development at Kathleen Valley remains ahead of schedule by 160 meters. By the end of March, Liontown had completed 1,849 meters of underground development. The first underground ore was extracted on 9 April 2024, with initial concentrate output recorded on 31 July 2024.

Liontown plans to draw down 500,000t of ore from its stockpile in Q2 2025 and an additional 100,000t in the second half of the year. This strategy ensures uninterrupted production as the company targets full underground operations by January–February 2026.

Market Dynamics Influence Lithium Pricing

Australia's total lithium exports jumped from 2 million tonnes in 2021 to 3.9 million tonnes in 2024, with 94.4% of that supply headed to China. Liontown CEO Tony Ottaviano noted that while demand remains robust, pricing will only recover as inventory levels normalize. However, the ongoing US-China trade tensions are limiting demand growth and suppressing prices.

The Metalnomist Commentary

Liontown’s rapid ramp-up in lithium output highlights Australia's growing dominance in the global battery supply chain. However, geopolitical tensions and inventory overhang continue to weigh on market pricing, posing a challenge to near-term profitability despite operational momentum.