Projects

Lithium Hydroxide Refinery

Liontown is investigating the potential for an integrated Refinery at Kathleen Valley to upgrade Spodumene from the mine to higher value Lithium Hydroxide Monohydrate.

Growth Opportunity

Refining Spodumene into Lithium Hydroxide Monohydrate presents an attractive growth opportunity for Liontown.

Kathleen Valley's high quality resource would provide the Refinery with a secure supply of low cost Spodumene, creating the potential for a fully integrated lithium chemicals producer in a stable and strategic geographic jurisdiction.  

Moving further downstream in the the fast-growing EV and battery value chain delivers compelling economics and is an option enabled by the size and quality of the Kathleen Valley’s resource.

Advantages

A Refinery at Kathleen Valley would enjoy a number of locational advantages including the nearby availability of electricity and gas, access to key consumables such as acid from the mining and logistics centre of Kalgoorlie, strong transportation links to major ports and the availability of extensive land for tailings storage.

We would utilise technology that is well proven, reducing investment and operating risk.

By staging the development of the Refinery after the completion of the Kathleen Valley Mine and Concentrator, we will have good flexibility on final sizing and specific timing of development and create the potential for the project to be funded from operational cash-flows. A staged approach to development will also reduce implementation risk.

Scoping Study

An updated Downstream Scoping Study, released in November 2021, confirmed the opportunity for an integrated mining, processing and refining operation at Kathleen Valley, using 6% Li2O Spodumene concentrate produced at the mine as feedstock for the production of battery grade Lithium Hydroxide Monohydrate in the Refinery.

The integrated project offers a real post-tax NPV of $9.6B (using a 8% discount rate), an IRR of 56% and an average annual EBITDA of $2.6B.

A Pre-Feasibility Study for the design and construction of the Refinery at Kathleen Valley is now underway.

Click here to read the Updated Downstream Scoping Study

Refinery

The Scoping Study identified the opportunity for a Refinery comprising three identical processing trains receiving feedstock from the 4Mtpa Spodumene concentrator.

A staged approach to construction is proposed: the first train would come online six years after the commencement of SC6.0 production; a further two trains would be added three years later.

When fully commissioned, production will be ~86ktpa of Lithium Hydroxide Monohydrate, making it one of the largest refineries outside China.

See Also