Hancock Lithium Mine Plan Advances as Spodumene Prices Recover

Hancock Lithium Mine

Hancock lithium mine plans in Western Australia are moving forward as stronger lithium concentrate prices revive confidence in large-scale spodumene development. Hancock Prospecting plans to build the A$1bn Andover mine, targeting production of up to 1.1mn t/yr of lithium concentrate.

Hancock lithium mine construction is scheduled to start in November 2028, with a two-year construction period. The project is planned for a 30-year operating life and would process 6mn t/yr of ore.

Hancock lithium mine development reflects a shift in lithium sentiment after the deep price collapse that forced project delays and suspensions across the sector. Spodumene prices have rebounded as Chinese battery demand improves and supply expectations tighten.

The Andover project is strategically important because Australia remains one of the world’s key hard-rock lithium supply bases. New capacity from Western Australia could support converters, battery producers and electric vehicle supply chains seeking long-term spodumene feedstock.

Andover Adds Scale to Western Australia’s Spodumene Pipeline

The Andover mine would become a major new lithium concentrate source if developed as planned. Annual output of up to 1.1mn t would give the project meaningful weight in the seaborne spodumene market.

The project sits within a broader ownership structure shaped by recent consolidation. Hancock Prospecting and Chilean lithium producer SQM partnered to acquire Azure Minerals in a A$1.7bn deal completed in May 2024 through their jointly owned company, SH Mining.

Andover is 60% owned by Azure, while Croydon Gold, a subsidiary of the Creasy Group, holds the remaining 40%. The involvement of Hancock and SQM gives the project both Australian mining strength and global lithium-market experience.

SQM’s role is especially relevant. The Chilean producer brings downstream lithium market knowledge, while Hancock adds financial capacity and Australian project execution capability.

The planned 30-year mine life also matters. Battery supply chains need long-duration feedstock sources, not only short-cycle spot supply. A project of this scale could support long-term offtake and conversion strategies.

Price Recovery Revives Lithium Project Economics

The Andover plan comes after a sharp recovery in spodumene concentrate prices. Prices rose in April as tighter supply expectations followed Zimbabwe’s introduction of export quotas for lithium concentrate.

Spodumene prices had previously collapsed to $900-1,100/t cif China in January 2024, down 83% after supply growth outpaced demand. That downturn forced many lithium developers to slow, delay or reassess projects.

Prices later began recovering in late 2025 as demand from China’s lithium-ion battery sector improved market sentiment. Stronger pricing has now made large hard-rock projects more attractive again.

However, lithium remains a volatile market. New supply from Australia, Africa, South America and China can quickly change balances if demand growth slows or inventories rebuild.

For Hancock, timing will be critical. Construction is not expected to start until late 2028, meaning the project will enter the market after the current price recovery has already been tested by several more years of battery demand and supply growth.

The strategic value remains clear. If lithium demand continues to rise from electric vehicles and energy storage, Andover could become an important feedstock source for global converters. If supply again expands too quickly, project economics may face renewed pressure.

The Metalnomist Commentary

Hancock’s Andover plan shows that lithium investment confidence is returning, but only for projects with scale, strong sponsors and long-term strategic value. The market has recovered from its deepest downturn, but future winners will still need cost discipline and secure downstream demand.