Australia-based Liontown Resources has opened the Kathleen Valley lithium project, the country’s first underground lithium mine. Full underground mining operations are set to start by September 2026, with an initial production target of 2.8mtpa yielding 500ktpa of spodumene concentrate.

Plans are in place to expand production to 4mtpa by the sixth year, with 700ktpa of spodumene concentrate. Liontown has secured offtake agreements with Tesla, Ford, LG Energy Solution, and Beijing Sinomine to ensure stable demand for initial production.

The Cook government has provided a A$15m interest-free loan to Liontown through its A$150m lithium industry support program. This support includes waivers of port fees, charges, and mining tenement fees for up to two years to aid operations during the ramp-up phase.

Mines and Petroleum Minister David Michael congratulated Liontown on opening the Kathleen Valley project, praising its role in attracting skilled workers and supporting local development. The government’s support aims to bolster Western Australia’s lithium sector and contribute to the global transition to clean energy.

The Kathleen Valley project officially opened following the commencement of underground production in April 2025. Liontown’s CEO highlighted the project’s alignment with national interests, supporting the energy transition and creating high-value regional jobs. Mining operations are strategically positioned to strengthen supply chains through key offtake customers.

Read more at Yahoo Finance: Liontown opens Kathleen Valley lithium operation in Australia