Another move higher has pushed this ASX lithium stock to fresh multi-year highs on Wednesday.
Liontown Ltd (ASX: LTR) shares are climbing again after a new update landed this morning.
At the time of writing, the share price is up 2.11% to $2.42, marking a new multi-year high.
The rally adds to a strong run this year, with Liontown now up more than 50% in 2026.
A lot of that momentum has come from a rebound in lithium prices, which has lifted sentiment across the sector.
Here's what the company just announced.
Image source: Getty Images
Early works kick off at Kathleen Valley expansion
In its release, Liontown outlined early works and long-lead procurement plans tied to the Kathleen Valley expansion in Western Australia.
This comes ahead of a final investment decision (FID), which Liontown expects in the first quarter of FY27.
Management is moving ahead with early-stage development to reduce future schedule and cost risks.
That includes ordering key equipment and starting site-based work programs tied to the expansion.
One of the more notable items is a 5.5MW ball mill, which sits on the project's critical path.
Delivery is expected to take around 18 months, locking in a key piece of infrastructure early.
The company is also progressing drilling, grade control work, and mine planning across the Northwest Flats orebody.
At the same time, development of underground access is continuing, alongside infrastructure upgrades and site mobilisation.
Spending starts ahead of FID
Further to the update, Liontown flagged early capital spending as part of this initial phase.
The ball mill alone is expected to cost around $12 million over the next 12 months.
Total early works spending is estimated between $15 million and $18 million in FY26. But that could rise to about $77 million before the FID is made.
Liontown said the aim is to bring forward key steps so the project can move faster once formal approval is locked in.
Management also noted that early procurement helps reduce pricing risk in a tight equipment market.
Foolish bottom line
Liontown is now moving beyond planning and into execution on its next growth phase.
The Kathleen Valley operation is already a major lithium asset, and the expansion is aimed at lifting output further.
The early spend is not that large, but it shows management is willing to commit some capital ahead of a final decision.
From here, it comes down to two things.
Lithium prices need to hold up, and the expansion needs to stay on track as it moves closer to FID.
And if both fall into place, the share price could push further into fresh highs.
