Liontown gives green light for $389M Kathleen Valley Expansion Project

• FID approved to expand world-class Kathleen Valley project
• Lifting steady-state spodumene concentrate production to a targeted five-year average
• Approved expansion capital of $389 million
• Additional spodumene concentrate to be sold through combination of spot sales and potential new offtake arrangements

Liontown’s (ASX: LTR) board of directors has made a positive final investment decision (FID) to proceed with the Kathleen Valley Expansion at the world-class WA lithium project.

The expansion is expected to deliver first incremental tonnes in FY28, targeting steady-state five-year average annual production around 780,000 dry metric tonnes (dmt) per annum of spodumene concentrate (SC5.4) from FY30, anticipated to peak at over 800,000 dmt in FY34.

Liontown will outlay an estimated $389 million on the expansion, inclusive of the $60 to $70 million of previously announced pre-FID expenditure in FY27 and contingency, with the spending to occur between FY27 and FY29.

MD and CEO Tony Ottaviano said the Expansion represents efficient capital expenditure by debottle-necking the process plant, which was designed and built to scale up.

He added that the decision to proceed with the Expansion is timed to take advantage of the built-in optionality, supported by improved market conditions, and is in line with the company’s strategy of developing Kathleen Valley to its full potential.

“The Kathleen Valley Expansion is expected to lift our concentrate production by over 50% to a five-year average of 780,000 dmt from FY30, making Kathleen Valley one of the most significant hard-rock operations in the world,” Mr Ottaviano said.

“The scale of the expansion brings two advantages, in lower unit costs and the ability to play a more meaningful role with our customers and with participants across the battery value chain.

“This expansion is capital efficient with one of the lowest capital costs per tonne among recent brownfield lithium projects and will be fast to market, as much of our operation was built for this expansion from day one.

“Our internal analysis uses the market’s forecast for pricing and supports our intention to fund this expansion from our own balance sheet and operating cash flow.

“When the Expansion is completed, it gives Kathleen Valley a scale that positions Liontown for sustained performance through the cycle, not just in the good years.”

LTR was up 0.53% to 95.5¢ with Mkt cap of $3.020B.

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