Finniss Lithium Operation Restart Signals Australian Spodumene Supply Return

Core Lithium

Finniss Lithium Operation is returning to production after Core Lithium restarted mining at the Grants open pit in Australia’s Northern Territory. The move marks the reopening of an asset that had been in care and maintenance since 2024 because of weak lithium prices.

Finniss Lithium Operation will process its first ore in the September quarter, with the first spodumene concentrate shipment expected in the December quarter. Additional shipments are planned for 2027.

Finniss Lithium Operation restart reflects the sharp recovery in spodumene prices after supply constraints emerged in late 2025. Core Lithium approved the restart in March as stronger pricing improved the economics of bringing idled capacity back online.

The Grants pit will provide access to around 800,000t of ore and deliver about 100,000t of spodumene concentrate on a 5% lithium oxide basis. Mining has started in line with Core Lithium’s final investment decision schedule and cost expectations.

Grants Pit Brings Near-Term Spodumene Back to Market

The Grants open pit gives Core Lithium a near-term route back into the seaborne spodumene market. First ore processing in the September quarter and first shipment in the December quarter create a clear restart timeline.

This matters because Australian lithium producers are beginning to respond to stronger market conditions. Several operations that were halted during the downturn are now restarting as prices recover.

Spodumene prices have rebounded sharply from the lows reached in December 2025. The recovery has made previously idled hard-rock assets more attractive, especially those with existing infrastructure and established development plans.

For buyers, the return of Finniss adds incremental Australian supply at a time when lithium converters are reassessing feedstock security. But the restart also adds new supply into a market still vulnerable to oversupply if too many projects return at once.

Core Lithium’s timing is therefore important. The company is moving before the next wave of supply fully arrives, but it must still prove stable mining, processing and shipment performance after a long shutdown.

BP33 Sets Up Longer-Term Finniss Expansion

Core Lithium is also advancing infrastructure work at the BP33 underground mine. The company awarded a A$274mn underground mining services contract to Develop Global for a three-to-five-year period.

BP33 is expected to be developed by mid-2027. It should help lift ore production at Finniss to 1.2mn t/yr by mid-2028.

Core Lithium’s final investment decision summary outlines a longer-term plan to produce spodumene concentrate over a 20-year mine life. Expected unit costs are around A$762/t, giving the operation leverage to higher spodumene pricing if execution stays on track.

The restart and BP33 development show how lithium producers are rebuilding confidence after the 2024-25 market downturn. The key difference now is that investors and customers will focus more closely on cost discipline, grade, logistics and customer commitments.

For the broader battery supply chain, Finniss adds another signal that Australian spodumene remains central to global lithium raw material supply. The market recovery is bringing supply back, but long-term balance will depend on whether battery demand can absorb returning and new production.

The Metalnomist Commentary

Core Lithium’s restart shows that the lithium cycle has turned enough to bring idled Australian mines back into action. The risk is that recovering prices invite too much supply too quickly, making cost discipline and offtake quality more important than restart headlines.

Core Lithium Stockpile Sale to Glencore Supports Finniss Restart Option

Glencore

Core Lithium stockpile sale to Glencore gives the Australian producer fresh liquidity as it evaluates a potential restart of the Finniss lithium mine in the Northern Territory. The deal reflects how stronger spodumene prices are beginning to reopen strategic options for lithium producers that curtailed operations during the market downturn.

Glencore will buy Core Lithium’s 5,100t spodumene stockpile at $2,023/t on a cif China and 6pc lithium oxide basis. The Core Lithium stockpile sale does not include the company’s 75,000t lithium fines inventory, which remains available for future sales.

The transaction matters because Finniss has been on care and maintenance since July 2024, when weak lithium prices made continued production uneconomic. With spodumene prices recovering sharply, Core Lithium stockpile sale proceeds could help support working capital and restart planning for the 205,000 t/yr operation.

Spodumene Price Recovery Improves Restart Economics

Spodumene prices have rebounded strongly from the lows that forced several Australian lithium producers to shut or suspend assets. When Core moved Finniss into care and maintenance in July 2024, 6pc Li2O spodumene prices were assessed at $909/t fob Australia. By late February 2026, prices had risen to around $2,012/t.

This price recovery changes the strategic logic for Finniss. A restart still depends on costs, mine planning, financing, offtake terms, and customer demand, but the market backdrop is now more supportive than it was during the downturn. Selling stockpiled material to Glencore gives Core a way to monetize inventory without immediately committing to full production.

Core also improved its commercial flexibility by scrapping its previous spodumene offtake agreement with Ganfeng Lithium in September 2025. That decision freed future Finniss output for new spot sales and offtake deals. In a rising price market, that optionality could become valuable.

Glencore Deal Highlights Renewed Interest in Lithium Supply

Glencore’s purchase highlights renewed trading and procurement interest in lithium units as market sentiment improves. For Core, selling to a global commodity group provides a direct route to market and could strengthen confidence around future sales channels.

The broader Australian lithium market is also watching restart signals. Mineral Resources is considering a restart of its dormant Bald Hill mine after closing the operation in November 2024 because of low lithium prices. This suggests the sector is moving from survival mode toward selective restart evaluation.

However, producers are unlikely to restart capacity aggressively without confidence in sustained prices. Lithium markets remain exposed to battery demand, Chinese conversion margins, inventory cycles, and electric vehicle sales momentum. Therefore, the Finniss decision will be an important test of whether the current spodumene recovery is strong enough to support real supply response.

The Metalnomist Commentary

The Glencore deal shows that lithium supply is moving back into option value territory. The key question is whether higher spodumene prices can hold long enough to justify mine restarts without recreating the oversupply that caused the last downturn.

Yahua Terminates Finniss Lithium Offtake Deal with Core Lithium Following Project Suspension

Yahua Lithium

Chinese lithium producer Yahua terminated its spodumene offtake agreement with Australia's Core Lithium for the suspended Finniss project operations. The Yahua Finniss lithium deal termination follows Core Lithium's decision to halt operations at the Australian project in July 2024. Core Lithium agreed to pay Yahua a $2 million settlement to resolve the contractual obligations under the original 2019 offtake agreement for the Yahua Finniss lithium supply arrangement.

Original Offtake Agreement Targeted 75,000 Tonnes Annual Spodumene Supply

The terminated offtake agreement required Yahua to purchase at least 75,000 metric tonnes per year of spodumene concentrate from Core Lithium's Finniss project. The parties signed this long-term supply contract in 2019 when lithium market fundamentals appeared more favorable for Australian project development. However, the Finniss project faced operational challenges and market headwinds that ultimately led to the suspension of mining activities.

Core Lithium's decision to halt operations reflects broader challenges facing Australian lithium projects amid volatile pricing and operational complexities. The $2 million settlement payment compensates Yahua for the terminated supply relationship while releasing both parties from future contractual obligations. Meanwhile, the Yahua Finniss lithium deal termination demonstrates the risks facing long-term offtake agreements when projects encounter operational difficulties.

Diversified Supply Strategy Shields Yahua from Feedstock Disruption

Yahua emphasized that the Finniss project termination will not affect its lithium feedstock supply security due to diversified sourcing strategies. The Chinese lithium producer owns the Kamativi lithium assets in Zimbabwe, providing direct control over spodumene production and processing operations. As a result, this backward integration strategy reduces Yahua's dependence on third-party Australian suppliers for critical lithium raw materials.

The company maintains additional supply agreements with established lithium miners including Australia's Pilbara Minerals and other global producers. These diversified supply relationships ensure consistent feedstock availability despite individual project disruptions or market volatility. Therefore, Yahua's multi-sourced approach provides operational flexibility and supply chain resilience across different geographic regions and mining operations.

Yahua's response to the Finniss project termination highlights the importance of supply diversification in the volatile lithium market. Chinese lithium processors increasingly pursue backward integration strategies and multiple supplier relationships to manage supply risks. Consequently, the Yahua Finniss lithium deal termination reinforces the strategic value of diversified sourcing approaches for lithium chemical producers.

The Metalnomist Commentary

The Yahua-Core Lithium offtake termination illustrates the fragility of long-term supply agreements in volatile commodity markets, particularly for emerging lithium projects facing operational and financial pressures. Yahua's emphasis on supply diversification through asset ownership and multiple supplier relationships reflects the evolving risk management strategies of Chinese lithium processors seeking to secure feedstock supplies amid market uncertainty and project development challenges.

Core Lithium Keeps Finniss Mine Idle Through 2025 Amid Market Glut

Core Lithium

Company Launches Restart Study While Exploration at Blackbeard Reveals Promising Lithium Grades Near Processing Plant

Finniss Mine to Stay Shut While Restart Study Continues

Core Lithium will keep its Finniss lithium mine in Australia’s Northern Territory on care and maintenance for most of 2025, as it awaits the results of a restart feasibility study by the fourth quarter. The company is reviewing pathways to reduce costs, enhance operational efficiency, and improve sustainability, according to its latest annual report.

As of 31 December 2024, Core reported holding $5.5 million worth of stockpiled lithium ore, reflecting a persistently oversupplied global lithium market.

Losses Narrow as Site Upgrades Move Forward

After incurring a $167.6 million loss in the first half of 2024, Core shut down Finniss, its flagship project, in June. However, by year-end, losses had been reduced to $17.2 million, with much of the expense tied to capital upgrades and exploration.

Core purchased power generators, replacing leased infrastructure, and invested in new water management systems and mine repair efforts. These initiatives aim to position the project for long-term resilience once lithium market conditions improve.

“We are committed to ensuring the Finniss Project is in the best possible position for a successful restart when market conditions allow,” said chairman Greg English.

Exploration Results Highlight Resource Expansion Potential

Despite halting production, Core maintained momentum on exploration. The company conducted drilling campaigns at two sites: Blackbeard Lithium and Shoobridge Gold. At Blackbeard, drilling intersected 1.67% lithium from depths between 63m and 166m, with results showing a consistent presence of high-grade mineralisation.

Importantly, the Blackbeard site is located just 20km from the Finniss processing plant, allowing for future operational integration if mining progresses.

“High-grade lithium-bearing pegmatites at mineable widths highlight the opportunity to expand Finniss’ lithium resources,” English noted.