The Liontown Ltd (ASX: LTR) share price is in focus as the company announces early works and long-lead procurement are now underway for the planned expansion of its Kathleen Valley Lithium Operation. This marks the company's first major step since its 2021 expansion study, with A$12 million committed to long-lead items and up to A$77 million expected before the final investment decision in Q1 FY2027.
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What did Liontown report?
- Early works and procurement have commenced for the Kathleen Valley expansion project.
- Approximately A$12 million of capital committed to purchase a 5.5MW ball mill, with expenditure over the next year.
- Expected total cash expenditure for early works in FY2026 is between A$15–18 million.
- Total spending ahead of the final investment decision could reach up to A$77 million.
- Development will enable increased concentrate production and improved plant efficiency through debottlenecking.
What else do investors need to know?
Liontown is moving early to secure critical equipment and ramp up its expansion team, aiming to reduce risks linked to schedule delays and rising costs. The work program includes pre-development drilling, upgrading plant infrastructure, and improved mine services to support extra mining capacity.
This expansion study is focused on staged improvements, with each phase unlocking further production capability at Kathleen Valley. Details on future spending and expected output increases will be shared at the time of the final investment decision, targeted for the end of Q1 FY2027.
What did Liontown management say?
Managing Director and CEO Tony Ottaviano said:
The early works position Liontown to deliver additional spodumene concentrate production as we progress through each stage to capture a strengthening market. Expansion at Kathleen Valley is currently the most value-accretive growth available to Liontown, and these commitments lay the foundation for that growth and demonstrate our confidence in the market and the operation.
What's next for Liontown?
Looking ahead, Liontown plans to keep developing the Kathleen Valley asset through staged growth and operational improvements. With early works now underway, the company is targeting increased production and enhanced plant performance over the next few years.
A final investment decision is expected by the end of Q1 FY2027, after which further details about capital costs and project outcomes will be released. Liontown's strategy remains anchored on supporting strong lithium demand and building value for shareholders.
Liontown share price snapshot
Over the past year, Liontown shares have risen 316%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
