IGO–Tianqi lithium refinery talks signal uncertain future for Kwinana

IGO

IGO–Tianqi lithium refinery talks now center on the future of Kwinana. The IGO–Tianqi lithium refinery talks follow a A$955mn annual loss and persistent under-performance. Therefore, the IGO–Tianqi lithium refinery talks could reshape Australia’s downstream lithium strategy.

Kwinana losses spur strategic review

IGO sees no clear path to sustainable returns at the 24,000 t/yr Kwinana lithium hydroxide refinery. The asset posted a A$28.7mn loss in 2024–25 amid equipment failures and sub-nameplate output. Tianqi owns 51pc of the project through TLEA, while IGO holds 49pc. IGO fully impaired its 49pc stake in the operating train on 31 July. TLEA also paused the planned 24,000 t/yr expansion in January. Meanwhile, TLEA will keep ramping the existing plant toward nameplate capacity.

Near-term output guidance and upstream pivot

The joint venture targets 9,000–11,000 t of lithium hydroxide in 2025–26, up from 6,782 t last year. However, the guidance still trails the facility’s design capacity, underscoring ramp challenges. The partners will also push upstream capacity at the Greenbushes mine. The new processing plant is nearly complete and should lift spodumene capacity to 2mn t/yr. TLEA plans to process 1.5–1.65mn t of spodumene this year, up from 1.48mn t. As a result, cash flow may rely more on upstream strength while Kwinana stabilizes.

The Metalnomist Commentary 

The JV’s near-term value likely sits in Greenbushes while Kwinana’s economics reset. If talks yield a re-scope or partner rebalancing, Kwinana must demonstrate reliable, cost-competitive hydroxide output to justify further capital.