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Liontown (ASX:LTR) has edged higher early Wednesday after outlining the first tangible steps toward a major expansion of its flagship Kathleen Valley lithium operation, with early works and long-lead procurement now underway ahead of a final investment decision targeted for the end of Q1 FY27.
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The CY26 move marks a shift from planning to execution, with Liontown committing capital and mobilising to support a staged growth strategy aimed at unlocking additional production capacity as markets improve.
Key to the expansion is the procurement of a 5.5MW ball mill, a critical long-lead item expected to boost plant throughput while improving grind size control and recovery rates.
Liontown says securing the mill early, alongside debottlenecking initiatives, positions it to deliver incremental capacity increases as soon as possible.
On the ground, pre-development drilling is continuing across the Northwest Flats orebody to support resource definition, grade control modelling and mine scheduling. At the same time, underground development is advancing, with new portals, ventilation, and power infrastructure planned to enable access to underground ore following the completion of the Kathleen’s Corner open pit.
Construction of Stage 1 of the permanent Mine Services Area is also underway, aimed at a ramp-up in mining fleet and personnel, while Liontown is progressing paste plant capacity to allow simultaneous backfilling of multiple orebodies.
Liontown expects to spend around $15 to $18 million across the early works program in FY26, with total spend ahead of FID forecast to reach up to $77 million. The ball mill alone carries a price tag of approximately $12 million over the next 12 months.
The company’s managing director, Tony Ottaviano, today said the early commitment is designed to mitigate schedule and cost risk while positioning the company to capitalise on improving lithium fundamentals.
With drilling, underground development and infrastructure build-out all progressing in parallel, Liontown is de-risking ahead of the FID, setting the stage for what it describes as the most value-accretive growth opportunity.
Investors will now watch for further results, updated definition at Northwest Flats, and, ultimately, the formal FID to greenlight full-scale expansion.
LTR has been +1% higher, at $2.39.
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