[SMM Analysis] Liontown Approves Kathleen Valley Expansion, Adding to Australia’s Medium-Term Spodumene Supply

Liontown Resources has approved an approximately A$389 million expansion of its Kathleen Valley lithium mine in Western Australia. The project is expected to lift spodumene concentrate production by more than 50% from current levels, with additional output expected to emerge around 2030. Liontown has also raised its FY27 capital expenditure guidance following the investment decision. 

Kathleen Valley remains in the ramp-up phase of its underground operation. In FY26, Liontown produced approximately 392,000 dmt of concentrate and shipped around 382,000 dmt at an average grade of 5.1% Li₂O. The company is targeting an underground mining run rate of 2.8 Mtpa by the end of FY27. Liontown

The expansion is notable because it is a brownfield project rather than a greenfield development. Kathleen Valley already has operating infrastructure, processing facilities, logistics and customer relationships in place, which generally reduces execution risk relative to new projects.

The decision also highlights a broader shift in lithium investment. As prices have normalized from previous highs, capital is increasingly being directed toward operating assets with established infrastructure and clearer pathways to lower unit costs. For the global supply outlook, brownfield expansions at existing mines may therefore prove more important than the headline number of newly announced projects.