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Billionaire Gina Rinehart-backed Liontown Resources (ASX: LTR) has begun producing lithium at its flagship Kathleen Valley project in Western Australia.
The first spodumene concentrate, the most common lithium containing hard rock, follows the commissioning of the processing plant, the company said.
The milestone marks the start of its production ramp-up towards 3 million tonnes per year (Mtpa), currently expected by the end of the first quarter next year.
“Two and a half years ago, we set ourselves the ambitious goal of achieving first production by mid-2024,” chief executive officer Tony Ottaviano said in the statement. “This is a monumental moment for Liontown and marks our transition from a construction project to a producer of high-quality lithium concentrate.”
Liontown said it would now focus on completing the remaining commissioning activities in the non-critical path areas of the plant, as well as concluding construction of critical underground infrastructure.
First sproduction at Kathleen Valley comes on the heels of the company entering a short-term supply deal with Chinese lithium refiner Beijing Sinomine International Trade.
The agreement will see Liontown shipping 100,000 dry metric tonnes of spodumene concentrate to Beijing Sinomine over 10 months, starting from Sept. 30.
The company has inked similar offtake agreements in the past, including the extension of a deal with South Korea’s LG Energy Solution early this month.
Shares in Liontown jumped almost 4% on the news closing at A$0.95 each, which gives the lithium producer a market capitalization of A$2.29 billion ($1.5bn).
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