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.

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.

Australian Lithium Companies Maintain Optimism Amid Low Prices, Eye Long-Term Growth

Despite lithium prices hitting a five-year low, Australian lithium mining companies remain optimistic about the future, expecting a price recovery later in the decade that will sustain their operations. Industry leaders expressed confidence at the Diggers and Dealers mining forum in Kalgoorlie, Western Australia, citing the cyclical nature of the market and the long-term demand driven by the electric vehicle (EV) industry.

Dale Henderson, CEO of Pilbara Minerals, likened the current market situation to "a bright blue sky with a bit of cloud cover," noting that price volatility is expected in rapidly growing industries like lithium. "It's no surprise really, given that lows always follow periods of highs," he said, emphasizing the industry's resilience.

The lithium market’s connection to the EV industry, which has experienced explosive growth in recent years, is a key factor in the optimism. Henderson highlighted that the combination of government stimulus, technological advancements, and varying rates of consumer adoption is driving the industry's evolution. He cautioned, however, that the road ahead would not be a "straight line" and that businesses must prepare for continued volatility.

Despite recent industry cutbacks, most Australian lithium companies are steadfast in their long-term strategies, confident that demand for lithium will continue to grow. Core Lithium, for instance, suspended operations at its Grants open pit mine in January, awaiting a market rebound. CEO Paul Brown mentioned that a price around $18/kg LCE is necessary to support the industry.

Tony Ottaviano, CEO of Liontown Resources, echoed this sentiment, stressing the importance of maintaining a long-term perspective. "When you see a 60% price reduction in six months, there is only one response a company can do and it is blunt. We need to hold our heads while others are losing theirs and push through," he said. Ottaviano pointed out that while EV adoption may be slowing in the US and Europe, it is expected to pick up as new models become competitive with internal combustion engine vehicles. In China, EV prices are already on par with traditional vehicles.

Looking forward, industry experts underscored the need for new investment in lithium to meet the anticipated surge in demand from EV manufacturing. However, current low prices are hindering the flow of necessary capital. Ivan Vella, CEO of IGO, which owns 49% of the world’s largest lithium mine, Greenbushes, highlighted the challenge of financing the development of 80 new lithium projects by 2035, each requiring substantial investment.

The optimism expressed by Australian lithium companies underscores their belief in the sector's long-term potential, despite current market challenges. As the EV market matures and demand for lithium grows, the industry is preparing to navigate through the volatility and capitalize on future opportunities.

Bald Hill Lithium Mine Restart Signals Stronger Spodumene Recovery

Bald Hill Lithium

Bald Hill lithium mine operations are restarting after Mineral Resources responded to a sustained recovery in lithium prices. The Western Australian mine had been on care and maintenance since November 2024.

Bald Hill lithium mine ramp-up will begin in late May, with crushing and mining operations scheduled to start in June. First spodumene concentrate production is expected in July.

Bald Hill lithium mine shipments are planned from the Port of Esperance in the third quarter of 2026. Full capacity is expected in the fourth quarter.

The restart shows that stronger spodumene prices are beginning to bring suspended Australian lithium capacity back into the market. It also confirms that producers are becoming more confident after the severe lithium downturn that forced project closures and delays.

Spodumene Prices Bring Idled Capacity Back

Bald Hill has production capacity of about 165,000 dry metric tonnes per year of 5.1% spodumene concentrate. On a normalized 6% spodumene concentrate basis, capacity is around 140,000 dmt/yr.

The restart is modest compared with Australia’s largest lithium operations, but it matters for market sentiment. Idled mines returning to production show that the price recovery is no longer only a paper-market signal.

Mineral Resources also operates the Wodgina and Marion lithium mines. The company has lifted production guidance for both assets for the fiscal year ending June 2026.

Wodgina guidance increased to 280,000 dmt of SC6, while Marion guidance rose to 220,000 dmt of SC6. Together with Bald Hill, these assets strengthen MinRes’ position as a major Australian spodumene producer.

The restart also adds more supply to the seaborne lithium concentrate market. That could help converters secure feedstock, but it also raises the risk that returning capacity eventually caps price upside if demand growth slows.

Posco Stake Reinforces Battery Supply Chain Link

South Korean steelmaker Posco acquired a 30% stake in MinRes in November 2025 for $765mn. That investment gives the restart a stronger downstream battery supply-chain connection.

Posco has been expanding across battery materials, and access to Australian spodumene can support long-term lithium chemical production. For MinRes, the relationship provides strategic capital and potential customer alignment.

Western Australia remains one of the world’s most important lithium supply regions. Its hard-rock mines feed converters in China, South Korea and other battery manufacturing hubs.

The Bald Hill restart therefore fits a wider supply-chain pattern. Lithium producers are trying to rebuild volumes as prices recover, while downstream players seek more secure feedstock before battery demand accelerates again.

The key question is whether the recovery remains strong enough to absorb returning supply. If prices hold, more idled lithium capacity could follow Bald Hill back into production.

The Metalnomist Commentary

Bald Hill’s restart shows that lithium’s recovery is becoming operational, not just financial. The market now needs to watch whether returning Australian supply supports battery security or creates the next round of oversupply pressure.

PLS Lithium Phosphate Offtake Signals Shift Toward Midstream Battery Materials

PLS Lithium

PLS lithium phosphate offtake with China’s Ningbo Ronbay New Energy Technology marks a strategic step by the Australian lithium producer into higher-value battery materials. The agreement covers lithium phosphate from PLS’ midstream lithium refining demonstration plant.

PLS lithium phosphate offtake gives the company an early customer pathway as it tests whether spodumene can be converted into an intermediate chemical product with broader downstream appeal. The plant is scheduled to deliver first product in the third quarter of 2026.

PLS lithium phosphate offtake also links the company directly with Ronbay, one of the world’s largest lithium iron phosphate cathode material producers. Ronbay will provide technical support as PLS works to optimise product quality and specification.

The agreement’s price and volume details were not disclosed. But the pricing structure will broadly reference lithium chemical prices, with a proportional mechanism similar to spodumene pricing.

Lithium Phosphate Could Shorten the LFP Supply Chain

PLS’ demonstration plant is designed to produce more than 3,000 t/yr of lithium phosphate. It will consume about 27,000 t/yr of spodumene.

The company took full ownership of the plant from former joint-venture partner Calix in February. That gives PLS more control over the development route as it moves beyond conventional lithium concentrate sales.

The strategic importance lies in the possible use of lithium phosphate as a direct feedstock for LFP cathode production. Some LFP cathode producers are testing lithium phosphate instead of lithium carbonate because it could shorten processing steps and reduce total production costs.

This matters because LFP batteries are gaining share in electric vehicles and energy storage systems. Cathode producers want lower-cost, reliable and scalable lithium inputs that can support high-volume manufacturing.

If lithium phosphate can meet strict cathode specifications, PLS could access a new customer base. Instead of selling only to lithium hydroxide or carbonate converters, it could sell directly into cathode material supply chains.

That would move PLS closer to battery manufacturers and allow it to capture more margin inside the lithium value chain.

Quality Testing Will Determine Commercial Potential

The opportunity remains at an early stage. PLS has warned that lithium phosphate must meet demanding quality requirements before it can become a commercial cathode feedstock.

Battery material customers require tight control over impurities, consistency, particle characteristics and chemical performance. A product that works technically at small scale must still prove reliability across repeated production.

Ronbay’s role is therefore important. As a major LFP cathode producer, it can provide practical feedback on product suitability, processing performance and downstream qualification needs.

The agreement also reflects a broader trend in lithium markets. Producers are no longer focused only on mining and concentrate production. They are looking for midstream products that can reduce processing complexity and improve customer access.

For PLS, lithium phosphate could serve multiple markets. It may supply existing lithium chemical producers, while also opening a direct route to cathode manufacturers.

The demonstration plant will test whether that strategy can move from concept to commercial scale. If successful, it could give spodumene producers a new pathway into battery materials without fully entering carbonate or hydroxide production.

The Metalnomist Commentary

PLS’ lithium phosphate strategy is a clear attempt to move higher in the battery value chain without jumping directly into full chemical conversion. The key test will be whether cathode makers accept lithium phosphate as a reliable feedstock at scale, not just as a technical possibility.

Vulcan Lithium Hydroxide Project Advances as German Construction Begins

Vulcan Lithium

Vulcan lithium hydroxide project development has moved into major construction in Germany, marking a key step for Europe’s domestic battery materials supply chain. Australian-listed Vulcan Energy has started building its 24,000 t/yr Lionheart lithium hydroxide project in the German state of Hesse.

The Vulcan lithium hydroxide project is scheduled to produce first output in 2028. The construction start follows Vulcan’s receipt of a six-year commercial production licence for the facility in March.

The Vulcan lithium hydroxide project is strategically important because Europe remains heavily dependent on imported lithium chemicals for battery manufacturing. Local lithium hydroxide production could support electric vehicle, battery cell and cathode supply chains across the region.

Vulcan plans to produce battery-quality lithium from low-impurity geothermal subsurface brines. The company will use direct lithium extraction technology, linking lithium production with geothermal resource development in the Upper Rhine Valley.

Geothermal Brines Support Europe’s Local Lithium Strategy

The Lionheart project is part of Europe’s broader effort to build domestic critical minerals capacity. Lithium hydroxide is a key input for high-nickel cathode chemistries used in electric vehicle batteries.

Vulcan’s route is different from conventional hard-rock lithium mining or evaporation pond production. The company plans to extract lithium from geothermal brines, then process it into battery-quality lithium hydroxide.

This matters because direct lithium extraction can reduce land use and accelerate processing compared with traditional evaporation routes. However, DLE projects still face technical and commercial execution risk because each brine system has different chemistry and operating requirements.

Construction of the surface extraction plant at Landau in the Upper Rhine Valley began in February. This upstream extraction work is critical because the lithium hydroxide plant depends on reliable brine supply and stable lithium recovery.

The project’s low-impurity geothermal brine base could give Vulcan a useful advantage if it can scale the process reliably. Battery customers require consistent quality, traceability and long-term supply security.

Public Funding Highlights Strategic Battery Materials Push

The Lionheart project received around €104mn in funding from Germany’s federal government and the states of Rhineland-Palatinate and Hesse last year. This public support shows how lithium processing has become an industrial policy priority in Europe.

Germany has a major automotive industry and is expanding battery manufacturing capacity. Domestic lithium hydroxide production could reduce exposure to overseas conversion hubs and strengthen regional supply resilience.

The project also fits Europe’s push to localise more of the battery value chain. Mining or extraction alone is not enough. Europe needs lithium chemicals, cathode materials, battery cells, recycling and downstream qualification with automakers.

Vulcan’s 24,000 t/yr planned capacity would not satisfy Europe’s full lithium demand. However, it could become a meaningful regional source if production starts as planned in 2028.

The next challenge is execution. Vulcan must complete construction, prove DLE performance, operate the geothermal brine system and qualify lithium hydroxide with battery customers.

The Metalnomist Commentary

Vulcan’s construction start shows that Europe’s battery supply-chain strategy is moving from policy ambition to industrial buildout. The project’s success will depend on whether geothermal brine extraction and lithium hydroxide conversion can scale reliably enough to meet automotive-grade standards.

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.

Mt Marion Lithium Expansion Advances as MinRes and Ganfeng Lift Spodumene Supply

Mineral Resources

Mt Marion lithium expansion is moving ahead after Mineral Resources and Jiangxi Ganfeng Lithium reached a final investment decision on a A$490mn upgrade at the Western Australian mine. The project will raise 6% spodumene concentrate output from 500,000 t/yr to 600,000 t/yr.

Mt Marion lithium expansion reflects renewed confidence in spodumene markets after a period of stronger pricing, Chinese demand and supply disruption from Zimbabwean export controls. The decision also reinforces Australia’s role as a core lithium feedstock supplier to global battery material chains.

Mt Marion lithium expansion includes A$220mn for underground mine development, A$240mn for a flotation plant and A$30mn for non-processing infrastructure. Construction is scheduled to begin in July-September.

The partners expect to commission the mine within 12 months of construction starting, with production ramp-up over the following six months. That timeline makes Mt Marion an important near-term growth project in the Australian hard-rock lithium sector.

Underground Mining Extends Mine Life and Feed Flexibility

The underground mine will supplement ore from the existing open pit and contribute up to 40% of processing feed. This will extend Mt Marion’s remaining mine life by six years beyond the previous estimate of 10 years.

That is strategically important because mine life extension improves supply visibility for customers and investors. Battery chemical producers need stable spodumene feedstock to support long-term lithium hydroxide and lithium carbonate production.

The underground development also gives MinRes and Ganfeng more operational flexibility. Combining open-pit and underground ore can support feed blending, grade control and continuity as the mine matures.

The project will cause minimal disruption to existing operations, according to the company. That matters because the mine is already a major producing asset and any downtime could affect near-term shipments.

Mt Marion is also backed by a strong downstream partner. Ganfeng is one of China’s leading lithium companies, giving the project a direct link to one of the world’s largest battery materials markets.

Flotation Plant Targets Higher-Grade Product Mix

The new flotation plant will remove SC3.5 product from MinRes’ mix and deliver a minimum SC5 grade product. This is a key upgrade because higher-grade concentrate can improve processing efficiency for downstream converters.

SC6 remains the benchmark product for hard-rock lithium supply. Increasing SC6 output to 600,000 t/yr gives Mt Marion stronger exposure to higher-value concentrate markets.

The investment economics are highly sensitive to price. At an assumed SC6 price of $2,700/t, MinRes expects the expansion payback period to be less than one year.

Spodumene prices have risen in recent months, supported by Zimbabwe’s lithium concentrate export controls and strong Chinese demand. The latest Australian SC6 assessment was $2,661/t on 19 May, down from $2,811/t a week earlier but still elevated enough to support renewed investment.

MinRes also cited higher lithium prices as a reason for restarting operations at its Bald Hill mine in Western Australia. Together, these moves suggest producers are again positioning for stronger lithium feedstock demand.

The broader lithium market remains volatile, but the Mt Marion decision shows that high-quality Australian assets can still attract capital when pricing, partners and mine-life extension align.

The Metalnomist Commentary

Mt Marion’s expansion shows that lithium investment is returning first to established, scalable assets with strong downstream links. The key lesson is that the next lithium cycle will reward producers that can improve grade, extend mine life and secure reliable routes into China’s battery supply chain.

Australia’s Liontown moves to underground Li mining at Kathleen Valley

Liontown

Australia’s Liontown moves to underground Li mining at its Kathleen Valley complex. Australia’s Liontown moves to underground Li mining after it stopped open-pit mining. Therefore, the producer is prioritising higher-grade feed and lower unit costs.

Liontown will keep processing stockpiled open-pit ore into the early July 2026–June 2027 financial year. The company previously relied heavily on open-pit ore for mill feed. Meanwhile, open-pit operations provided 56% of total mined ore in July–September 2025.

Higher-grade underground ore targets better recoveries and costs

Australia’s Liontown moves to underground Li mining to lift lithium recoveries at Kathleen Valley. The company expects recoveries to reach about 70% by March 2026. That compares with 58.3% in 2024–25 when it relied mainly on open-pit ore.

Lower recoveries hit output and guidance last year. Liontown produced 155,000 tonnes of spodumene concentrate in 2024–25. However, that fell below its 170,000–185,000 tonne guidance due to weaker recovery performance.

Australia’s lithium ramp-up raises the bar for operating discipline

Australia’s Liontown moves to underground Li mining as national supply growth continues. Australia’s Office of the Chief Economist raised its lithium production forecast for 2025–26. It expects Australian lithium mine output to grow 9.1% per year across 2024–27 financial years.

Other producers are also expanding spodumene capacity. Talison Lithium increased Greenbushes spodumene capacity by about 500,000 tonnes per year to 2.14mn tonnes per year. As a result, cost control and recovery optimisation will matter more across the lithium supply chain.

The Metalnomist Commentary

This shift is a classic move from volume to margin. However, underground execution can introduce dilution and scheduling risk. The operators who stabilise recoveries will outperform in a crowded spodumene market.

PLS Ngungaju Lithium Plant Restart Signals Stronger Confidence in Spodumene Demand

PLS

PLS Ngungaju lithium plant restart marks a notable shift in sentiment across the lithium sector. PLS said it will restart the Ngungaju processing plant at Pilgangoora in Western Australia, with production resuming in July. The plant has capacity of 200,000 t/yr of spodumene concentrate. As a result, PLS Ngungaju lithium plant restart suggests the company sees stronger customer demand and firmer lithium market conditions ahead.

This move matters because producers do not restart idled capacity lightly. PLS directly linked the decision to sustained improvement in market conditions and customer demand. That makes the restart more than a technical update. Therefore, PLS Ngungaju lithium plant restart is a commercial signal that parts of the lithium market are stabilizing.

Pilgangoora already holds strategic importance in the global spodumene trade. Adding Ngungaju output back into the system strengthens PLS’s ability to respond to improving demand. Meanwhile, the restart also gives the market a clearer sign that producers are becoming more confident in near-term offtake conditions.

Pilgangoora Spodumene Expansion Adds a Bigger Growth Layer

Pilgangoora spodumene expansion is the larger strategic story behind the restart. PLS is also studying an increase in total Pilgangoora capacity to around 2mn t/yr of spodumene. That shows the company is not only restarting existing capacity. It is also thinking about the next scale phase.

This matters because future lithium supply will depend on projects that can grow efficiently from an established base. Pilgangoora already has operating infrastructure and market relevance. Therefore, Pilgangoora spodumene expansion could become one of the more important medium-term supply growth stories in Australian lithium.

The combination of restart and expansion study sends a stronger message than either move alone. A restart suggests near-term confidence. A capacity study suggests longer-term ambition. As a result, PLS is positioning Pilgangoora as both a recovery asset and a future growth platform.

Lithium Refining Strategy Now Moves Closer to PLS Control

Lithium refining strategy is also becoming more central to the company’s direction. PLS agreed to take full ownership of a demonstration refining plant from Calix. That facility is designed to produce more than 3,000 t/yr of concentrated lithium-phosphate salt from about 27,000 t/yr of spodumene feed. Consequently, PLS is moving further downstream as well as restoring mining and processing capacity.

This step matters because lithium producers increasingly want more control over value-added conversion, not only concentrate supply. Full ownership of the demonstration plant gives PLS greater freedom in how it develops its refining path. Therefore, lithium refining strategy is becoming a more meaningful part of the company’s wider portfolio.

The broader implication is clear. PLS is strengthening both upstream and downstream options at the same time. That creates more flexibility if lithium demand continues to recover. Meanwhile, it gives the company more strategic depth than a pure spodumene producer.

The Metalnomist Commentary

This restart matters because it suggests the lithium market is moving from defense toward selective reactivation. The more interesting signal is that PLS is pairing renewed spodumene output with greater refining control. That combination could make Pilgangoora one of the clearer recovery stories in the sector.

Liontown Begins Underground Lithium Mining at Kathleen Valley

Liontown

Kathleen Valley Shifts to Underground Lithium Mining

Australian battery minerals firm Liontown has officially begun underground mining at its Kathleen Valley lithium site. The move marks a strategic transition from open-pit mining, aimed at improving efficiency and long-term resource value.

The first underground ore batch yielded approximately 1,500 tonnes, with trials showing lithia recoveries above 70%. This milestone positions Kathleen Valley as Australia’s only operational underground lithium mine, setting it apart in a competitive sector.

Production Outlook Amid Market Challenges

Liontown projects underground output to reach 500,000 t/yr of spodumene concentrate, targeting 700,000 t/yr by 2030. By mid-2026, the company expects its mill to be supplied entirely from underground output and stockpiles, increasing operational efficiency.

However, facing weak lithium prices, Liontown reduced its broader mine output guidance by 200,000 t/yr, now aiming for 2.8mn t/yr. For H1 2025, production guidance stands at 170,000–185,000 dry metric tonnes, following Q4 2024 output of 88,683 dmt.

Despite market softness, demand from large-scale battery projects — especially in the Middle East — offers optimism. Each project demands up to 20GWh in storage capacity, nearly matching Kathleen Valley’s annual spodumene production.

The Metalnomist Commentary

Liontown’s underground transition reflects a broader trend of resource optimization amid lithium market turbulence. While short-term price pressure persists, demand from global energy storage and EV sectors remains resilient. Underground mining may emerge as a competitive differentiator as supply constraints tighten and end-user quality demands rise.

Rio Tinto Eyes Major Lithium Acquisition Amid Market Uncertainty

Arcadium Lithium

Global mining powerhouse Rio Tinto has confirmed its interest in acquiring the US-based Arcadium Lithium, a move that could potentially elevate the company to one of the top global lithium producers. On October 7, Rio Tinto released a statement clarifying that the approach is currently non-binding, and there is no certainty a deal will be reached. Arcadium Lithium, formed earlier this year from a merger between Allkem and Livent, also confirmed the overture.

A Strategic Move in the Face of Market Challenges

Arcadium has emerged as a significant player in the lithium market, projected to be the third-largest producer by 2027. In the first half of 2024, the firm sold 20,100 tons of lithium hydroxide and lithium carbonate, with expectations to ramp up production to 170,000 tons of lithium carbonate equivalent (LCE) by 2026. However, the company has faced setbacks due to the downturn in the lithium market, including halting operations at its Mt Cattlin mine in Western Australia. Despite these challenges, Arcadium's long-term expansion plans aim for a production capacity of 295,000 tons of LCE by 2028.

Rio Tinto’s strategic expansion into lithium aligns with its growing focus on battery metals. In 2023, Rio Tinto invested in Australian lithium projects, positioning itself as a key player in the burgeoning electric vehicle (EV) market. With a lithium carbonate processing plant in Argentina expected to come online later this year, the potential acquisition of Arcadium could solidify Rio Tinto’s place as a leading force in the global lithium supply chain.

AVZ Minerals and CATH Restructure Manono Lithium Project Joint Venture

Manono Lithium

Australian lithium miner AVZ Minerals and Chinese battery material producer Suzhou CATH Energy Technologies (CATH), partly owned by Contemporary Amperex Technology (CATL), have restructured their joint venture agreement for the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC).

Revised Agreement Details

Under the new agreement, CATH will pay AVZ Minerals $259 million in cash for a 30.5% indirect interest in the Manono project.  Additionally, CATH will provide $20 million to finance AVZ's working capital and general expenditures. This infusion of capital will likely be crucial for AVZ as it navigates ongoing challenges related to the project.

Offtake Agreement and Future Collaboration

CATH has secured a revised offtake deal, granting them the option to purchase up to 100% of Manono's spodumene concentrate, contingent on fulfilling certain conditions. This provides CATH with a significant potential source of lithium feedstock.  Furthermore, AVZ will have the option to acquire up to 49% of CATH's interest in a lithium hydroxide or carbonate conversion plant that CATH plans to construct. This potential future collaboration on downstream processing could be a significant development for both companies.

Background and Ongoing Dispute

The Manono project has been embroiled in a dispute between AVZ and Chinese miner Zijin Mining over a previously unrecognized transaction involving the DRC's state-owned mining firm Cominiere.  This complex situation adds another layer of complexity to the project's development.  Adding to the challenges, AVZ recently acknowledged an investigation involving bribery and corruption accusations related to the Manono project, with the Australian Federal Police executing search warrants.  AVZ has denied any wrongdoing.  These legal and ownership disputes highlight the risks associated with mining projects in the DRC and the importance of due diligence and transparent business practices.

Chile Rio Tinto Lithium Deposit Partnership Secures Largest Undeveloped Resource

Chile Rio Tinto

Chile Rio Tinto lithium deposit partnership emerged as Chile's national mining company Enami selected the Anglo-Australian miner to explore and develop the Altoandinos project, the country's largest undeveloped lithium deposit. The Chile Rio Tinto lithium deposit agreement establishes a public-private concession with Rio Tinto holding 51% ownership while Enami retains 49%, representing a combined $3 billion investment where Rio Tinto contributes $425 million for access to over 15 million tonnes of lithium carbonate equivalent resources.

Competitive Selection Process Validates Rio Tinto's Technology Leadership

Chile Rio Tinto lithium deposit selection followed Enami's unanimous board decision choosing Rio Tinto from a competitive pool including China's BYD, France's Eramet, and South Korea's Posco. Rio Tinto's proprietary direct lithium extraction (DLE) technology provided the decisive advantage, offering faster and more environmentally friendly operations compared to traditional evaporation methods. The DLE approach eliminates brine evaporation requirements while accelerating production timelines and reducing environmental impact.

Meanwhile, Rio Tinto's Rincon plant in Argentina serves as a demonstration and pilot facility for Chilean operations since both brine deposits share similar chemical compositions. This existing operational experience provides technical validation and reduces development risks for the Altoandinos project. Rio Tinto will assume complete operational responsibility while financing the project through financial operation and contributing to pre-feasibility study expenses.

Massive Resource Scale Supports 75,000 Tonne Annual Production

However, the Altoandinos salt flat contains substantial lithium resources exceeding 15 million tonnes of lithium carbonate equivalent with production capacity reaching 75,000 tonnes annually according to Enami projections. This production scale positions the project among global lithium industry leaders while supporting Chile's strategic objectives for lithium sector development. The resource magnitude justifies the $3 billion investment commitment from both partnership participants.

Therefore, the project timeline remains under development with no specific operational start date announced pending pre-feasibility study completion and regulatory approvals. The comprehensive development approach ensures technical optimization while addressing environmental and social considerations essential for sustainable lithium extraction. Rio Tinto's operational expertise combined with Enami's local knowledge creates optimal conditions for successful project implementation.

Strategic Expansion Reinforces Chile Lithium Market Leadership

Furthermore, the Altoandinos partnership follows Rio Tinto's recent selection by Chilean copper giant Codelco for the Maricunga salt flat exploration, representing Chile's second-largest undeveloped lithium deposit. This dual partnership positioning demonstrates Rio Tinto's strategic commitment to Chilean lithium development while reinforcing Chile's global lithium market leadership. The concurrent projects create synergies for technology deployment and operational efficiency.

As a result, Chile strengthens its position as the world's premier lithium jurisdiction through strategic partnerships with established international miners possessing advanced extraction technologies. The public-private partnership model enables state participation in resource development while leveraging private sector expertise and capital. This approach maximizes economic benefits while maintaining national control over strategic mineral resources essential for global energy transition.

The Metalnomist Commentary

Chile's selection of Rio Tinto for both the Altoandinos and Maricunga lithium projects demonstrates sophisticated resource development strategy that prioritizes advanced extraction technology and environmental sustainability over purely financial considerations. The emphasis on direct lithium extraction capabilities reflects Chile's commitment to maintaining global lithium leadership through technological innovation, particularly important as competition intensifies from emerging producers in Argentina, Australia, and other jurisdictions seeking market share.

Posco and Hancock Prospecting to Construct New Lithium Plant

Hancock Prospecting

In an ambitious move to secure a more robust lithium supply chain, South Korean steelmaker Posco, in partnership with Australia’s Hancock Prospecting, has announced plans to build a 30,000 metric tonne per year lithium processing plant. The exact location of the plant is still under deliberation, with potential sites being evaluated in various countries, including South Korea.

Strategic Expansion in Lithium Sector

The collaboration between Posco and Hancock is a strategic step to bypass US Foreign Entity of Concern (FEoC) regulations and solidify Posco's standing in the lithium value chain. Posco’s plan is to manage a full spectrum from mining and extraction from salt lakes to producing lithium hydroxide and cathode materials, and eventually recycling them. This comprehensive approach aims to fortify its supply chain amidst growing demand for lithium, primarily driven by the electric vehicle and renewable energy sectors.

Global Partnerships and Investments

Both Posco and Hancock are not new to the lithium industry. Hancock holds a 19.9% stake in Liontown Resources, an Australian lithium developer. Posco has been extending its reach in the lithium market through various international partnerships, including joint ventures with Pilbara Minerals in Australia and an investment in the Sal de Ora brine project in Argentina’s Salar del Hombre Muerto.

These ventures underline both companies' commitment to strengthening their positions within the global lithium market, which is expected to grow significantly due to the increasing emphasis on sustainable and renewable energy resources.

Rio Tinto Chosen as Codelco Lithium Partner in Chile's Maricunga

Codelco

Chilean state miner Codelco has selected Rio Tinto as its strategic partner to develop lithium in the high-grade Salar de Maricunga basin. The newly announced joint venture marks a significant milestone for Chile’s lithium roadmap, positioning the Rio Tinto Codelco lithium partnership as a key force in one of the world’s richest brine regions. The agreement grants Rio Tinto a 49.99% stake, with Codelco holding 50.01% and leading the development.

$350 Million Investment Sets Stage for DLE Breakthrough

Under the terms of the deal, Codelco will contribute mining rights and fund feasibility studies, while Rio Tinto will initially invest $350 million in further resource analysis. If the project advances, the Australian miner has committed another $500 million to construct a direct lithium extraction (DLE) plant by the decade’s end. An additional $50 million will be invested if lithium is commercially shipped before 31 December 2030. The Rio Tinto Codelco lithium partnership aims to commercialize Maricunga as Chile’s second lithium-producing salt flat after Salar de Atacama, where Codelco also now holds licenses.

Chile Reinforces Public-Private Lithium Model

This partnership aligns with Chile’s national lithium strategy, which mandates Special Lithium Operating Contracts (CEOLs) under public-private frameworks. Since 2023, all lithium reserves are state-owned, and any development requires government participation and profit-sharing. The Rio Tinto-Codelco project represents one of three concessions awarded recently, following community approval from nearby indigenous groups. The Rio Tinto Codelco lithium partnership also signals growing trust in DLE technology and a potential shift in how Latin American lithium assets are developed.

The Metalnomist Commentary

The Rio Tinto-Codelco lithium alliance reflects a global trend: pairing major miners with national resource holders in strategic battery material projects. With political backing, high-grade resources, and DLE innovation, Maricunga could become South America's next lithium flagship.

Tianqi Lithium Boosts Lithium Salts Output Despite Lower Spodumene Production

Tianqi Lithium

Tianqi Lithium increased chemical lithium output in 2024, balancing weaker spodumene concentrate production from its Australian operations.

Lithium Chemical Production Surges at Anju Facility

Chinese producer Tianqi Lithium reported a 39% increase in lithium salts output in 2024, reaching 70,715 tonnes. This includes lithium carbonate, hydroxide, chloride, and metal produced across China and Australia. The ramp-up at the Anju factory in Sichuan province drove most of the increase, bringing the company’s global chemical capacity to 91,600 t/yr.

Meanwhile, Tianqi canceled phase two of its Kwinana lithium hydroxide plant in Australia due to economic concerns. The first phase, with 24,000 t/yr capacity, remains in operation. Tianqi aims to reach 122,600 t/yr in future chemical capacity.

Spodumene Output Falls, but Resources Remain Strong

In contrast, spodumene concentrate output fell by 7.4% to 1.41 million tonnes at the Greenbushes mine in Australia. Tianqi and IGO’s joint venture owns 51% of Greenbushes, with Albemarle holding the other 49%. Despite the dip, Greenbushes remains the world’s largest and lowest-cost hard rock lithium mine.

Tianqi plans to start production at a 520,000 t/yr Plant 3 project in October 2025, aiming to expand its spodumene processing capabilities.

Meanwhile, Greenbushes’ total lithium resources held steady at 440 million tonnes, or 16 million tonnes LCE. However, proven reserves dipped to 8.1 million tonnes LCE from 8.5 million the year before.

The Metalnomist Commentary

Tianqi Lithium’s focus on ramping up downstream capacity shows a strategic pivot toward value-added products. While mining volumes fluctuate, control over refining capacity secures margin stability amid global lithium price volatility.

Chile Projects $83.2 Billion in Mining Investments Through 2033

Chile mining

Chile is poised to solidify its position as a global mining powerhouse with projected investments of $83.2 billion spanning 2024-2033.

Massive Investments in Mining Projects

The Chilean Copper Commission (Cochilco) unveiled its latest study highlighting a significant increase in mining investments for the coming decade. The forecast includes 51 mining projects, up from 49 in the previous study for 2023-2032, which projected $65.7 billion in investments. This growth signals Chile's commitment to bolstering its mining sector and enhancing its global competitiveness.

Key players in Chile's mining expansion include major domestic entities like El Abra, Antofagasta, and state-run copper miner Codelco, which collectively account for 64.5% of the total investment. International stakeholders are also playing a vital role:

• Canadian companies such as Teck, Capstone Copper, Los Andes Copper, and Kinross will represent approximately 10% of investments.
• Japanese corporations, including Sumitomo Metals and Mitsubishi Corp, will contribute 5.7%.
• Australian firms, spearheaded by BHP Billiton, will make up 5.2%.

Copper Production and Diversification

The influx of capital is projected to increase Chile’s copper production capacity by 2.23 million metric tonnes annually, adding to the 5 million tonnes produced in 2023, according to the US Geological Survey (USGS). This aligns with Chile’s status as the world’s largest copper producer.

Additionally, $4.7 billion of the investments will be allocated to 15 projects focusing on "metals other than copper," including lithium and gold. Chile already ranks as the world's second-largest producer of lithium, a critical material for batteries and renewable energy storage.

Driving Forces Behind the Investment Surge

This investment boom highlights Chile’s strategic approach to capitalizing on the global demand for essential minerals. Increased copper production will cater to infrastructure and green energy projects worldwide, while lithium investments target the surging electric vehicle and renewable energy sectors.

Cochilco’s report emphasizes the country’s appeal to global mining giants and underscores Chile’s robust regulatory framework and resource-rich landscape as key factors driving foreign investment.

EnergyX Targets Argentinian Lithium Assets of Galan Lithium Amid Industry Downturn

US energy technology firm EnergyX has set its sights on acquiring Australian developer Galan Lithium’s assets in Argentina, a strategic move aimed at boosting lithium production despite current market challenges.

EnergyX has proposed a deal valued at $150 million, which includes $50 million in cash and $50 million worth of EnergyX shares, to purchase Galan’s lithium assets located in Salar del Hombre Muerto and Candelas. Additionally, EnergyX plans to inject another $50 million into its wholly-owned subsidiary, which will manage the assets. This funding will be allocated to complete the first commercial phase of lithium production at the Hombre Muerto West (HMW) project. Under the proposed agreement, Galan will receive 10% of gross revenue royalties for ten years following the commencement of commercial production.

The acquisition comes at a crucial time as Galan Lithium recently delayed the first production at its HMW project to the second half of 2025, attributing the delay to the current downturn in lithium prices. The HMW project’s initial phase is expected to produce 5,400 tons per year of lithium carbonate equivalent (LCE), with a long-term goal of reaching 60,000 tons per year in its final phase. The Candelas project is expected to be integrated into this production timeline.

EnergyX plans to leverage its direct lithium extraction (DLE) technology, which is significantly more complex than traditional methods but promises higher efficiency. DLE can potentially increase lithium recovery rates to 70-90%, compared to the traditional methods' 40-60% recovery rate from hard rock mining and solar evaporation. This innovative approach could significantly enhance the value of the Argentinian assets beyond Galan's current projections, which rely on evaporation pond methodologies.

The lithium industry has seen increasing interest in DLE technology from various sectors, including oil and gas companies. Firms like CleanTech Lithium, Equinor, and ExxonMobil are already investing in lithium projects that employ DLE, reflecting a broader industry shift towards more efficient and sustainable extraction methods.

Liontown Lithium Production Holds Flat as Kathleen Valley Shifts Underground

Liontown

Liontown lithium production was flat in January-March as the Kathleen Valley operation completed its first full quarter as a fully underground mine. The Australian miner produced 96,000t of spodumene concentrate during the quarter, unchanged from a year earlier but down 9% from the previous quarter.

Liontown lithium production is now being reshaped by the transition away from previously mined open-pit ore toward underground feed. The shift is important because underground ore is expected to support more stable grades and recoveries as Kathleen Valley moves deeper into its long-term operating model.

Liontown lithium production also faced shipment disruption from tropical cyclone Narelle, which temporarily affected port operations at Geraldton in Western Australia. Two shipments were delayed, including one that was deferred into early April.

The quarter shows a lithium producer moving through a technical transition rather than a demand-led slowdown. Kathleen Valley is still ramping toward its longer-term target of around 500,000 t/yr of spodumene concentrate.

Underground Feed Improves Recovery Outlook

Kathleen Valley’s underground mining performance improved during the quarter. Underground ore mined totalled 402,000t, up 31% from the previous quarter, with an average grade of about 1.4% lithium oxide.

Lithia recoveries improved in late March as underground ore became the dominant feed source. Liontown achieved its 70% recovery target, while underground ore accounted for 67% of the feed mix in the first weeks of April.

This is a key operational milestone. As the feed mix shifts away from open-pit stockpiles, Kathleen Valley should gain better consistency in processing performance, grade control and recovery rates.

However, the transition also affected quarterly output. Lower production volumes and variable recoveries pushed unit operating costs higher, showing that underground ramp-up periods can create temporary cost pressure before stable-state performance is reached.

Kathleen Valley has a 2.8mn t/yr mining capacity and is expected to produce around 500,000 t/yr of spodumene concentrate. Reaching that level will depend on sustained underground ore delivery, process stability and shipment execution.

Port Disruption and Cost Pressure Shape Near-Term Performance

Cyclone-related disruption affected sales during the quarter. Tropical cyclone Narelle interrupted operations at Geraldton for several days in March, delaying two shipments.

Liontown ended the quarter with 26,270 dry metric tonnes of concentrate in inventory. This was up from 13,800dmt in the previous quarter and 22,519dmt a year earlier, partly reflecting shipment timing.

Unit operating costs on a fob sales basis rose to A$981/t from A$910/t in the previous quarter. The increase was driven by lower production volumes and recoveries during a period of variable feed mix.

This cost movement matters because lithium markets remain highly competitive after the price correction of the past two years. Producers need scale, grade control and low operating costs to defend margins.

Kathleen Valley’s underground transition could improve cost performance over time if recoveries remain stable and mined volumes continue rising. But the quarter shows that ramp-up execution remains critical.

For the wider lithium market, Liontown’s flat output adds to a more disciplined supply picture. New spodumene supply is still entering the market, but operational transitions, weather disruptions and cost pressure continue to affect how quickly nameplate capacity becomes reliable production.

The Metalnomist Commentary

Liontown’s quarter should be read as an underground ramp-up story, not a weak demand signal. Kathleen Valley’s recovery performance is improving, but cost control and shipment reliability will determine how competitive the operation becomes as lithium supply remains under pressure.