Australia-based battery minerals provider Liontown Resources has officially opened its Kathleen Valley lithium project, the country's first underground lithium mine.
Liontown aims to achieve full underground mining operations at the project by September 2026.
Situated in the northern Goldfields region of Western Australia (WA), the project is expected to initially produce 2.8 million tonnes per annum (mtpa), yielding 500,000 tonnes per annum (ktpa) of spodumene concentrate.
Liontown plans to expand production to 4mtpa by its sixth year, yielding 700ktpa of spodumene concentrate.
The company has established offtake agreements with electric vehicle and battery manufacturers Tesla, Ford, LG Energy Solution and Beijing Sinomine, to ensure stable demand for most of the initial production.
Liontown managing director and CEO Tony Ottaviano stated: “The Kathleen Valley lithium operation aligns with the national interest: it supports the energy transition, creates high-value and well-paid regional jobs, and is strategically positioned to strengthen supply chains in the west through our Korean and US offtake customers — everything our national critical minerals strategy is designed to achieve.”
The Cook government has provided an A$15m ($9.7m) interest-free loan to Liontown through its A$150m lithium industry support programme to bolster ongoing operations at Kathleen Valley amidst current low prices.
The government's support extends to a waiver of port fees, charges and mining tenement fees for up to two years, aiding Liontown during the critical ramp-up phase of the project.
Liontown has also drilled two holes with the aid of the Exploration Incentive Scheme.
This effort has broadened the company's knowledge of the site's geological features beyond the established resource.
Mines and Petroleum Minister David Michael stated: "I would like to congratulate Liontown on opening the landmark Kathleen Valley lithium project, which is attracting skilled workers and strengthening local development.
"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.”
The official opening of the Kathleen Valley project follows the commencement of underground production in April 2025.
