Liontown Board approves development of Kathleen Valley Lithium Project

The Liontown Board has made the Final Investment Decision (FID) for the Kathleen Valley Lithium Project. The decision comes after we secured high-calibre foundational offtake agreements with major players in the automotive and energy industries, including Ford, Tesla, and LG Energy Solution. With the FID in place, we are now poised to commence construction, with first production targeting mid-2024.

We have already made progress in awarding contracts, including the design, build, and construction of a modern accommodation village, which has been awarded to ADD Business Group. Manufacturing of accommodation units is already underway, and early site works have commenced.

In preparation for pre-production mining, scheduled to commence in early 2023, we have been actively conducting grade control drilling. This early work has put us well ahead of schedule, ensuring a smooth transition into full-scale production.

As part of the FID process, Liontown has revised its capital cost estimate for the project. The optimisation and expansion of the front-end engineering design (FEED) scope, along with general cost escalation, have led to an increase in the capital cost estimate from A$473 million to A$545 million. These adjustments are expected to improve the project’s operational flexibility and process control, ultimately benefiting long-term operating costs.

The company’s strong financial position has enabled the Board to endorse the immediate commencement of project execution and the Kathleen Valley Lithium Project is poised to become a Tier-1 second-generation lithium project. Liontown’s Managing Director and CEO Tony Ottaviano said, “Announcing FID is a significant milestone and represents a major landmark for the Project’s development. On the back of securing our third foundational offtaker and favourable debt financing arrangements, the Board has moved swiftly and decisively to make a FID, underscoring Liontown’s collective determination to deliver Kathleen Valley as quickly as possible.”