IGO and Tianqi Halt Expansion of Kwinana Lithium Hydroxide Project

Tianqi Lithium

Rising Inventory Levels Force Project Suspension

Australian miner IGO and China’s Tianqi Lithium have stopped all work on the second lithium hydroxide train at their Kwinana refinery in Western Australia. The decision follows a buildup of lithium hydroxide inventory at the facility, where the first 24,000-tonne-per-year train remains in its ramp-up phase. On January 24, both companies confirmed the suspension of the identical-capacity second train.

Impairment Charges and Market Challenges

IGO and Tianqi have warned investors of impairment charges related to the Kwinana site. Tianqi estimates a total impairment provision of 1.412 billion yuan ($195 million) in 2024 for construction-in-progress and right-of-use assets. This figure excludes any potential impairment for the first train. IGO stated that the final impairment value will be disclosed on February 20.

Greenbushes Mine Faces Delays Amid Lithium Market Downturn

Beyond Kwinana, IGO and Tianqi also co-own Greenbushes, the world’s largest and lowest-cost hard rock lithium mine, alongside Albemarle. The site has faced project timeline delays due to the prolonged lithium market downturn. Commissioning of its chemical-grade plant 3 has been pushed back to September-December 2026 from a previous target of July-September 2025.

Greenbushes spodumene output reached 406,000 tonnes in the third quarter of 2024, marking a 22% increase from the previous quarter but a 2% decline year-over-year. Meanwhile, lithium hydroxide production at Kwinana climbed 13% from the previous quarter and more than doubled year-over-year to 1,502 tonnes.