Liontown lithium ramp-up: first-year output, costs, and the road to underground

Liontown

Liontown delivered a strong first year as the Liontown lithium ramp-up advanced at Kathleen Valley. The mine produced 294,521t of 5.2pc spodumene in FY2024-25. This Liontown lithium ramp-up sets the base for guided growth despite near-term cost pressure.

Production beats milestones, but guidance slipped in 1H

Liontown accelerated production through January–June, contributing 181,601t at 5.2pc. On a 6pc basis, that equals 155,000t. However, output came in below the 170,000–185,000t guidance. The company targets 365,000–450,000t at 5.2pc in FY2025-26. Production will skew to the second half after a planned shutdown. Expected ore grade improvements in early 2026 support the Liontown lithium ramp-up.

Prices soften; costs elevated ahead of recovery gains

Average realised prices fell as markets weakened. April–June sales averaged $740/t versus $815/t in January–March, both at 6pc. Full-year average reached $788/t on a 6pc basis. Unit costs rose to A$931/t fob in January–June at 6pc. This exceeded the A$755–855/t expectation because output lagged. For FY2025-26, Liontown guides A$855–1,045/t at 5.2pc. Meanwhile, WA approved an interest-free A$15mn loan to support operations.

The shift underground is underway to lift recoveries. Underground mining started in April as the site transitions by Q1 2026. Recovery should rise to 70pc from 58.3pc in FY2024-25. Nameplate capacity is 500,000 t/yr today, rising to 700,000 t/yr by 2030. As a result, the Liontown lithium ramp-up remains central to long-term battery supply.

The Metalnomist Commentary

Liontown is trading short-term cost pain for durable recovery gains as underground tonnages build. Price volatility still matters, but higher recoveries and a deeper grade profile can compress unit costs. Watch the H2 FY2025-26 run-rate and maintenance execution for proof of trajectory.