Liontown Lithium Sales Jump as Kathleen Valley Ramp-Up Gains Momentum

Liontown

Liontown lithium sales rose strongly in the fourth quarter of 2025 as Kathleen Valley continued its ramp-up. The company sold 112,000 dry metric tonnes of lithium concentrate during the quarter. That was 38pc higher than a year earlier. As a result, Liontown lithium sales now show stronger operating momentum from one of Australia’s most watched new lithium mines.

The performance matters because Kathleen Valley is still in a scale-up phase. Liontown is mining both open pit and underground ore at the operation. That gives the company more flexibility as it lifts production. Therefore, Liontown lithium sales are becoming a clearer indicator of how well the mine is moving toward steadier commercial output.

Pricing also remained supportive during the quarter. Liontown sold six parcels at an average realized price of $900 per dry metric tonne on a 6pc Li2O basis. Meanwhile, its all-in sustaining cost stood at $695 per dry metric tonne. Consequently, the gap between selling price and cost suggests improving commercial quality as volumes rise.

Kathleen Valley Lithium Mine Is Moving From Commissioning to Commercial Scale

The Kathleen Valley lithium mine is now shifting from early ramp-up toward more meaningful market participation. Liontown said it continues to increase production, which supports the stronger quarterly sales result. That matters because volume growth is often the hardest stage for new hard-rock lithium projects. However, Kathleen Valley now appears to be moving through that phase with growing confidence.

Product quality remains another key factor. The company sold concentrate at an average grade of 5.1pc lithium oxide during the quarter. While that sits below the 6pc reference basis used for pricing, it still shows the mine is delivering saleable material at rising volumes. Therefore, the Kathleen Valley lithium mine is strengthening both operational credibility and commercial visibility.

The company’s pricing strategy also adds flexibility. Liontown uses a mix of spodumene, lithium carbonate, and lithium hydroxide indexes with different quotation periods. That approach can help it respond to changing market conditions. As a result, Liontown lithium sales are not tied to a single pricing formula in a volatile market.

Spodumene Auction Pricing Adds a High-Value Option to Liontown’s Sales Mix

Spodumene auction pricing is becoming one of the most interesting parts of Liontown’s strategy. The company plans to retain 10-20pc of production for auction. It sold 10,000 dry metric tonnes in its first auction in November at $1,254 per dry metric tonne. That result was well above the quarter’s average realized price.

This matters because auctions can capture faster price movements than longer-term formula contracts. Liontown also said spodumene prices rose faster than lithium chemical prices during the quarter. That created an opportunity to extract more value from spot-facing sales. Consequently, spodumene auction pricing could become an important earnings lever as production expands.

The customer base also strengthens the company’s market position. Liontown has offtake agreements with LG Energy Solution, Chengxin, Tesla, and Ford. Meanwhile, LG Energy Solution now owns 8pc of the company after converting its convertible note into equity. Therefore, Liontown enters the next phase of ramp-up with both industrial backing and diversified commercial relationships.

The Metalnomist Commentary

Liontown is no longer just a development story. It is becoming a live test of how new spodumene producers balance contracted sales with auction upside. If Kathleen Valley keeps ramping smoothly, Liontown could become one of the more commercially agile lithium names in the market.

Liontown Lithium Output Surges as Underground Operations Accelerate

Liontown Lithium

Australia's Liontown Resources has increased its lithium output by 12% in the first quarter of 2025, reaching 95,709 tonnes of spodumene concentrate. This marks a significant leap from the previous quarter and supports its ambitious transition to full underground mining by early 2026.

Liontown Hits Q1 Production Milestone

Liontown’s Kathleen Valley mine saw spodumene output rise from 85,698t in October–December 2024 to 95,709t in January–March 2025. This growth reflects the mine’s ramp-up phase, as it produced nothing during the same period a year ago. To meet its semiannual target of 170,000–185,000t, Liontown must deliver at least 74,291t in the current quarter.

Shipments also climbed 16% quarter-over-quarter to 93,940t. With a current stockpile of 1.3 million tonnes and 23,000t of saleable concentrate ready, Liontown is well-positioned to sustain production through its upcoming underground transition.

Strategic Stockpile Supports Transition to Underground Mining

Underground development at Kathleen Valley remains ahead of schedule by 160 meters. By the end of March, Liontown had completed 1,849 meters of underground development. The first underground ore was extracted on 9 April 2024, with initial concentrate output recorded on 31 July 2024.

Liontown plans to draw down 500,000t of ore from its stockpile in Q2 2025 and an additional 100,000t in the second half of the year. This strategy ensures uninterrupted production as the company targets full underground operations by January–February 2026.

Market Dynamics Influence Lithium Pricing

Australia's total lithium exports jumped from 2 million tonnes in 2021 to 3.9 million tonnes in 2024, with 94.4% of that supply headed to China. Liontown CEO Tony Ottaviano noted that while demand remains robust, pricing will only recover as inventory levels normalize. However, the ongoing US-China trade tensions are limiting demand growth and suppressing prices.

The Metalnomist Commentary

Liontown’s rapid ramp-up in lithium output highlights Australia's growing dominance in the global battery supply chain. However, geopolitical tensions and inventory overhang continue to weigh on market pricing, posing a challenge to near-term profitability despite operational momentum.

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.

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.

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.

Liontown Resources Achieves Record Lithium Shipment to South Korea

Liontown Resources

Liontown Resources, an Australian lithium mining company, has recently made headlines with its largest-ever shipment of spodumene concentrate, which included a significant delivery to South Korean battery manufacturer LG Energy Solution (LGES). This marks a pivotal moment for Liontown as it continues to expand its footprint in the global lithium market, essential for the burgeoning electric vehicle (EV) industry.

Strategic Partnerships and Market Expansion

This landmark shipment of 33,000 wet metric tonnes (wmt) of spodumene concentrate not only represents Liontown's largest single delivery but also signifies the commencement of its long-term offtake agreement with LGES. Approximately 11,000 wmt of this shipment was designated for LGES, with the remainder fulfilling orders for an existing short-term offtake partner.

Enhanced Production and Quality

The concentrate, boasting a weighted average grade of about 5.2% Li2O, underscores Liontown’s capability to meet the high-quality standards demanded by industry leaders in battery production. Since September, Liontown has been consistently shipping from its Kathleen Valley Lithium Operations, highlighting its ongoing efforts to ramp up production.

Long-Term Commitment

In July, Liontown and LGES reinforced their partnership by extending their initial five-year offtake agreement by an additional ten years, demonstrating a strong mutual commitment to long-term collaboration. This extension is poised to provide sustained supply stability to LGES and secure a reliable revenue stream for Liontown.

Liontown Ramps Up Lithium Production at Kathleen Valley Amid Growing Demand

Liontown Resources

Steady Growth in Spodumene Concentrate Output

Liontown Resources continues to ramp up lithium production at its Kathleen Valley project in Western Australia, reinforcing its position as a key player in the global battery metals market. The company produced 88,683 tonnes of spodumene concentrate in the October-December 2024 quarter, a significant increase from 28,171 tonnes in the previous quarter. This surge in production brings the firm closer to achieving a stable output rate in early 2025.

Production Expansion and Shipment Milestones

Liontown mined 1.2 million tonnes of lithium ore in Q4 2024, doubling its stockpiles from 570,000 tonnes to 1.2 million tonnes. The firm expects to produce between 170,000 and 185,000 tonnes of spodumene concentrate in January-June 2025, maintaining its upward momentum. However, it announced a slight reduction in long-term processing capacity at Kathleen Valley, cutting its original 3 million tonnes per year ore target to 2.8 million tonnes per year.

Despite steady production growth, lithium ore milling dipped in November 2024, reaching 181,000 tonnes, down from 208,000 tonnes in October, due to a planned mill shutdown. Fortunately, operations recovered in December, supporting continued production increases.

Strategic Shipments to Global Offtake Partners

In December 2024, Liontown completed its first spodumene concentrate shipment, delivering 11,000 wet metric tonnes (wmt) to LG Energy Solution (LGES), a major South Korean battery manufacturer. Additionally, 22,000 wmt of concentrate was shipped to other short-term partners, further expanding Liontown’s customer base.

Another shipment is scheduled for January 2025 for a new long-term offtake partner, with the delivery set to depart from Western Australia's Port of Geraldton. While Liontown has yet to disclose details about this agreement, the move signals growing global interest in Australian spodumene concentrate.

As lithium demand surges for electric vehicle (EV) batteries, Liontown’s rapid production scale-up positions it as a key supplier in the global lithium supply chain. With further shipments and processing improvements on the horizon, the company remains on track to meet 2025 production targets.

Liontown Resources Scales Back Lithium Expansion Amid Market Downturn

Liontown Resources

Australian lithium producer Liontown Resources has revised its production targets for the Kathleen Valley project, a move aimed at reducing costs amid a challenging lithium market downturn. The project, initially set to reach a processing capacity of 3 million tonnes per year (t/yr) by Q1 2025, is now expected to hit a reduced capacity of 2.8 million t/yr by the end of the company's fiscal year 2027.

Strategic Shift in Expansion Plans

Liontown’s decision to scale back expansion focuses on targeting higher-margin ore to optimize profitability. The company anticipates capital expenditure reductions of A$100 million ($64 million) through cost optimization and strategic investment cuts.

• Revised capacity: 2.8 million t/yr by 2027.
• Production forecast (2028-30): 530,000 t/yr of 6% grade spodumene concentrate.
• Capital investment (January-June 2025): Estimated at A$97 million-A$113 million.

Production Guidance and Market Context

Liontown has issued production guidance for January-June 2025, forecasting 170,000-185,000 dry metric tonnes (dmt) of spodumene at unit operating costs of A$775-855/dmt on a free-on-board (fob) basis. The company produced its first spodumene concentrate earlier this year, coinciding with a global lithium market slump driven by oversupply concerns.

Industry-Wide Belt-Tightening

Liontown is not alone in navigating the lithium market downturn. Competitors such as Pilbara Minerals and Mineral Resources have also announced spodumene output reductions in response to falling prices and an oversupplied market. Despite these challenges, Liontown’s revised strategy aims to position the Kathleen Valley project for sustainable long-term growth while managing near-term financial pressures.

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.

Australia's Liontown Meets Lithium Output Target Amid Market Challenges

Australian lithium producer Liontown Resources has achieved a significant milestone by producing its first spodumene concentrate from the Kathleen Valley project, meeting its mid-2024 goal despite earlier financial difficulties. The first shipment of spodumene concentrate is scheduled for later in the current quarter (July-September), according to an announcement on July 31.

Liontown recently secured a short-term 10-month offtake agreement with Beijing Sinomine International Trade. Additionally, long-term contracts with major auto manufacturers and battery producers such as Tesla, LG Energy Solution, and Ford are expected to commence as the Kathleen Valley project reaches full production capacity over the next year.

The Kathleen Valley project is ramping up to a capacity of 3 million tons per year, a target anticipated by the end of the first quarter of 2025. Liontown also plans to expand this capacity to 4 million tons per year. The company’s funding deal with LG Energy Solution will facilitate early works to "preserve" the expansion option with a timeline set for 2027.

This new supply of lithium from Liontown comes amid a market downturn with ongoing concerns about oversupply. Australian financial services firm Macquarie has projected a potential slowdown in the pace of Australian production growth due to unencouraging price conditions.

In a related development, US lithium producer Albemarle announced on July 31 a halt to the construction of train 3 at its Kemerton lithium conversion facility in Western Australia, citing "ongoing industry headwinds" as part of a comprehensive review of its cost and operating structure. Each train at the facility has a processing capacity of 25,000 tons per year of lithium hydroxide. Albemarle will also place train 2 into care and maintenance while focusing on increasing production from train 1.

Commenting on Albemarle’s decision, Australia’s federal resources minister Madeleine King urged bipartisan support for the country's critical minerals and rare earths industry. King also called on political opposition parties to support Australia’s critical minerals production tax incentive to bolster local industry and jobs.

Kathleen Valley Lithium Mine Shifts to Underground Extraction for Higher-Grade Output

Kathleen Valley

Liontown Accelerates Underground Transition Amid Market Headwinds

Australian lithium producer Liontown Resources is advancing the transition of its Kathleen Valley mine from open-pit to underground operations to access higher-grade lithium ore and reduce operational waste.

Underground Mining to Fully Replace Open Pit by 2026

Liontown began underground mining at the 2.8mn t/yr site in November 2023. It aims to cease open-pit activity by the first quarter of 2026. The underground ramp-up is scheduled to begin in the second quarter of 2025, as outlined in the company’s H2 2024 report released on 14 March.

Efficiency Gains Support Financial Recovery

The company significantly improved open-pit efficiency before scaling back operations. The waste-to-ore ratio dropped from 5.1 in Q3 to 1.25 in Q4 2024. Spodumene concentrate output surged from 28,171t to 88,683t during the same period.

These gains helped narrow Liontown’s losses, with a net loss of A$15.1mn ($9.5mn) in H2 2024 — a 51% improvement compared to A$30.9mn a year earlier.

Low Lithium Prices Remain a Challenge

Liontown acknowledged ongoing pressure from weak spodumene and lithium chemical prices. Nevertheless, the firm believes operational efficiency at Kathleen Valley will help weather market volatility.

BlueOval SK Kentucky battery production begins, marking a US EV supply milestone

BlueOval SK

BlueOval SK Kentucky battery production has officially started. BlueOval SK Kentucky battery production supplies Ford and Lincoln EVs. BlueOval SK Kentucky battery production strengthens domestic content and scale. The Kentucky 1 plant carries 43 GWh per year. A twin 43 GWh plant sits on the same site. The JV is Ford and SK On.

Capacity ramp, model timing, and US industrial policy

The Glendale campus targets two plants at 43 GWh each. The first line produced commercial cells on 19 August. Therefore, Ford secures near-term cell supply in the US. Ford will also invest $2bn in Louisville. That supports a midsize electric pickup in 2027. As a result, localized cells pair with localized assembly.

Portfolio adjustments, Tennessee delay, and lithium sourcing shifts

Ford and SK planned 129 GWh across three plants. However, the Tennessee plant slips to 2028. Prototype output should start in 2027. The glidepath reflects slower US EV adoption. Ford trimmed a Liontown spodumene order. Liontown resold up to 150,000 wet tonnes to Chengxin. Supply chains continue adjusting to demand signals.

The Metalnomist Commentary

US cell capacity is arriving, but demand pacing remains uneven. Watch yield learning curves, offtake allocation, and IRA-driven cost per kWh. Tennessee timing and model launches will steer utilization and margins.

Tesla Texas lithium refinery starts operations near Corpus Christi

Texas lithium refinery

Tesla Texas lithium refinery operations have started near Corpus Christi, creating a regional battery materials source. Tesla Texas lithium refinery capacity can supply lithium for over 500,000 EVs per year. Meanwhile, Tesla says it moved from 2023 groundbreaking to operations at record speed for its new process.

Tesla Texas lithium refinery output focuses on battery-grade lithium hydroxide for EV packs. The plant strengthens Tesla’s US battery supply chain for its Austin vehicle factory and other sites. As a result, Tesla can reduce exposure to long, fragile conversion routes.

A new refining route that targets cleaner byproducts

Tesla’s process changes how it treats spodumene into lithium chemicals. The process avoids hazardous byproducts and produces a co-product for concrete mixes. However, the commercial value of that co-product will matter for long-run unit costs.

This approach also changes permitting and compliance conversations around conversion plants. Cleaner waste profiles can reduce friction with local stakeholders and regulators. Therefore, process performance and consistent quality will decide whether the model scales.

Feedstock links Canada and Australia to a US battery hub

Tesla sources spodumene concentrate from North American Lithium in Canada and Liontown’s Kathleen Valley in Australia. Those supply links connect upstream mining to a US conversion hub on the Gulf Coast. Meanwhile, Gulf logistics can support inbound concentrate and outbound battery-grade material efficiently.

The strategic value is clear in a market defined by price swings and policy risk. A domestic lithium hydroxide node can support tighter production planning and inventory control. As a result, Tesla can treat refining as a resilience tool, not only a cost lever.

The Metalnomist Commentary

Tesla’s refining start is a supply chain signal as much as a materials milestone. However, the model still hinges on reliable spodumene flows and stable conversion yields. The winners will pair new chemistry with disciplined procurement and long-term offtake alignment.

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.

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.