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.