Liontown Resources Adjusts Production Plans for Kathleen Valley Lithium Project in Response to Market Conditions

Liontown Resources has updated its production strategy for the Kathleen Valley lithium project, located approximately 60 kilometers north of Leinster, Western Australia. This adjustment comes as the company seeks to navigate softened lithium prices for the second half of the 2024-25 financial year (H2 FY25).

Following the first shipment of spodumene concentrate in late September, Liontown is now aiming to reset its production baseline and revise its mine plans. These changes could yield up to $100 million in cost reductions, while also preserving options for future expansion when market conditions improve.

The company has set new operating cost expectations at $775–855 per dry metric tonne of spodumene concentrate for H2 FY25. Under the revised plan, Liontown targets an annual production rate of 2.8 million tonnes by the end of FY27, emphasizing high-margin output and reducing both development and fixed costs.

“When market conditions change, companies need to quickly adapt to meet the market,” said Liontown’s managing director and CEO, Tony Ottaviano. “The business optimization work done by our team shows our responsiveness to the current low-price environment."

Ottaviano also highlighted the advantages of their underground mining approach, allowing Liontown to focus on high-margin areas and scale operations flexibly. “Our goal is to ensure long-term value for our shareholders by leveraging the quality of our assets to meet strong long-term demand for lithium,” he added.

This strategic shift underscores Liontown's commitment to aligning production with market demands while positioning itself for long-term growth and value creation.