Liontown Resources (ASX:LTR) has officially opened its Kathleen Valley lithium operation — which the Western Australian Government considers a “globally significant, long-life” asset and the nation’s first underground lithium mine.
Open pit mining began in July 2024, with the transition to underground production starting in April 2025. Full underground mining is targeted by September 2026.
Mines and Petroleum Minister David Michael attended the formal opening of the project, which took place on 10 July 2025, located in the northern Goldfields region of Western Australia.
Michael says the government is working with the industry to ensure Western Australia remains a global leader in the lithium-ion battery supply chain.
“The Cook Government is proud to support Western Australia’s lithium sector – a major employer, a key contributor to the State’s economy and an essential part of the global transition to clean energy,” he says.
Liontown, which has a market capitalisation of $1.82 billion, signed offtake agreements with global electric vehicle and battery manufacturers including Tesla (NASDAQ:TSLA), Ford (NYSE:F), LG Energy Solution (KRZ:373220) and Beijing Sinomine (SZSE:002738).
These deals secured demand for most of the Kathleen Valley project’s initial production and positioned Liontown as an emerging force in the global lithium supply chain.
The Western Australian Government is providing ongoing support for the lithium sector through the current price downturn, with the long-term outlook remaining strong as global demand for battery minerals continues to grow.
According to the Department of Industry, Science and Resources (DISR), rapid global lithium demand is projected over the outlook period to 2027. Demand is underpinned by continued growth in electric vehicle adoption and battery energy storage system deployment.
Liontown has received a $15 million interest-free loan through the Western Australian Government’s $150 million Lithium Industry Support Program to support ongoing operations at Kathleen Valley.
To further assist during the project’s ramp-up phase, the state government also approved a waiver of port fees and charges and mining tenement fees for up to 24 months.
Kathleen Valley has a current resource estimate of 155 million tonnes at 1.3% lithium oxide and 131 parts per million (ppm) tantalum pentoxide. Over 80% of the resource is classified as a measured or indicated category.
The operation also has an ore reserve of 68.5 million tonnes at 1.34% lithium oxide and 120ppm tantalum pentoxide as of 2021, supporting an expected 20-year mine life.
Liontown Resources is a battery minerals provider focused on its two major hard-rock lithium deposits.
Write to Aaliyah Rogan at Mining.com.au
Images: Liontown Resources
