On 9 April 2025, Liontown Resources (Liontown) commenced underground production on schedule at its flagship Kathleen Valley lithium mine in Western Australia, marking a key milestone in the mine’s development schedule.

The first production stope firing at the Mt Mann orebody extracted approximately 1,500t of ore and forms part of an initial stope, designed to extract 12kt of ore, the equivalent of two days of plant production.

The transition to underground mining, a first in the Australian lithium sector is expected to come with distinct advantages over open-pit operations. Reduced ore dilution should result in higher lithia recoveries, with recoveries exceeding 70% confirmed during previous trials of underground ore grading 1.5% Li2O. This marks a significant improvement on the average recovery of 52% reported during the period from August to December 2024, where 901kt of open pit ore was processed with an average grade of 1.3% Li2O.

Despite the positive news, shares fell 4% on 9 April, as the announcement coincided with a broader market selloff. Liontown shares are down 65% in the past 12 months, as market oversupply has pressured battery-grade lithium carbonate prices in China to approximately RMB71,000/t (US$8,500/t), the lowest level since the start of 2021.