Liontown Resources: Building a Lithium Powerhouse from the Ground Up
Liontown Resources Ltd (ASX: LTR) is fast proving it isn’t just another lithium hopeful. The company has moved decisively from development to commercial production at its flagship Kathleen Valley Lithium Operation, delivering on key milestones even as the broader lithium market battles price pressures and supply chain imbalances.
With over 200,000 tonnes of spodumene concentrate produced since July 2024 and a growing reputation for operational delivery, Liontown is positioning itself as a leading Tier-1 lithium supplier from one of the world’s most stable jurisdictions.
Production Momentum Backed by Strong Execution
The March 2025 quarter saw Liontown notch record spodumene output of 95,709 dry metric tonnes (dmt), supported by rising lithia recovery and reliable plant performance. Sales volume also increased to 93,940 dmt across five cargoes, with shipments reaching an average grade of 5.2% Li2O.
Commercial production was formally declared in January 2025, unlocking full revenue recognition. A$104 million in quarterly revenue was recorded, representing a 17% uplift from the previous quarter. Cost control measures were equally impressive, with unit operating costs falling 18% to A$816 per tonne and all-in sustaining costs down 8% to A$1,081 per tonne.
These gains translated into positive operating cash flow of A$14 million and a solid closing cash balance of A$173 million, despite ongoing investment into underground mine development and infrastructure.
Operational Strengths That Set Liontown Apart
- Consistently improving lithia recovery, rising from 58% to 64% quarter-on-quarter
- Underground development ahead of schedule, with 1,849 metres achieved in the March quarter
- 308 metres per jumbo per month productivity, indicating a highly efficient mining team
- Process plant flexibility demonstrated by successful blending of OSP material and underground ore
- Tantalum circuit optimisation adding incremental value to the product suite
- Renewable energy penetration above 80%, enhancing ESG credentials
Transition to Underground Mining in Full Swing
With open-pit operations scheduled for completion in Q3 FY26, Liontown is well into its transition toward underground mining. First stoping production at the Mt Mann orebody commenced successfully in April 2025, and infrastructure such as the paste fill plant is progressing as planned.
The underground mine is expected to deliver higher-grade ore with reduced dilution, lower strip ratios, and greater consistency in feedstock. A significant 1.3Mt ROM stockpile has already been established to support a smooth transition, derisking both operational continuity and cost.
A Broader Market Ready to Turn
Despite lithium pricing volatility, downstream demand remains robust. Forecasts from major cell manufacturers such as CATL point to lithium demand growing 133% for EVs and 143% for energy storage systems by 2030. Liontown's high-grade product and reliable supply from a Tier-1 jurisdiction make it a preferred partner in this landscape.
Looking Ahead: Growth, Optionality, and Integration
Liontown is now focusing on extracting full value from its Kathleen Valley asset. Beyond simply increasing volumes, the company is exploring future downstream integration with partners such as LG Energy Solutions and Sumitomo. These relationships could evolve into joint ventures or tolling arrangements, giving Liontown exposure to more of the lithium value chain.
With strong operational momentum, improving cost performance, and strategic positioning for future battery market growth, Liontown is no longer just ramping up it is setting the stage to become a core supplier for the electrification era.
Pilbara Minerals (ASX: PLS): Big Grade. Bigger Game Plan. From Dirt to Dominance: Pilgangoora Just Got Even Bigger
Pilbara Minerals is one of Australia’s leading lithium producers, operating the globally significant Pilgangoora Project in Western Australia. Known for its large-scale, high-grade hard rock lithium resource, the company supplies spodumene concentrate to key players in the global battery supply chain, with growing exposure to downstream value-add segments through international partnerships.
On June 24, 2025, the company released a sharp, market-defining upgrade to its flagship asset and it wasn’t just noise.
The Pilgangoora Resource jumped 23 percent in contained lithium, now standing at 446 million tonnes at 1.28 percent Li2O, confirming its position as one of the world’s largest and highest-grade hard rock lithium projects. This isn’t just size for the sake of it. The quality has been fine-tuned by removing uneconomic low-grade ore and zeroing in on high-value zones. Over 104,000 metres of drilling, focused across the Central pegmatite corridor, didn’t just add tonnes, it added confidence.
With lithium prices still cooling, most would’ve played defence. Pilbara didn’t flinch. It pressed forward.
Strong Hands, Smart Moves: This Is Capital with Conviction
Pilbara isn’t waiting for the market to turn. It’s using the lull to lay bricks.
As of March 2025, the balance sheet shows $1.1 billion in cash and an undrawn $625 million facility. That’s dry powder most lithium peers would envy. The P680 and P1000 expansion programs are now complete, and production scale is already dialled in. What’s next is optimisation.
In Brazil, the Colina Project continues to advance. In South Korea, the joint venture with POSCO is already producing lithium hydroxide and attracting demand beyond Train 1’s design capacity. When demand returns, Pilbara will be one of the few ready to meet it with scale and product optionality.
Digging Deeper: Exploration, Integration, and Midstream Mastery
Pilbara is not just mining lithium. It is building a diversified lithium value chain.
A mid-stream demonstration plant is now under construction, marking a strategic step into refining and value-added processing. The company has also defined an Exploration Target of up to 102 million tonnes grading between 1.0 and 1.5 percent Li2O, with active focus on the Bridge Zone. This area, which links the Central and North pits, remains open at depth and largely underexplored.
Global lithium demand continues to build beneath the surface. Benchmark Mineral Intelligence projects a 15 percent CAGR in battery-grade demand through 2035. Current spodumene prices sit well below long-term equilibrium, creating the kind of disconnect that companies like Pilbara are structured to outlast and outperform.
Bottom Line
Pilbara Minerals is not just enduring a lithium market slowdown. It is strategically positioning for dominance in the next growth cycle. Grade uplift, strong liquidity, international expansion, and a firm move into downstream processing all point in one direction. While the market focuses on short-term pricing pain, Pilbara is building long-term strength in every layer of its business.
(Source: Company Announcements)
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
