Australia’s first underground lithium mine

Liontown Resources (ASX: LTR) has officially opened its Kathleen Valley lithium project 680km north-east of Perth, WA.

The project is a globally significant, long-life operation and Australia’s first underground lithium mine that is expected to generate jobs and bolster local development.

Liontown has already signed offtake agreements with some of the world’s leading electric vehicle (EV) and battery manufacturers including Tesla, Ford, LG Energy Solution and Beijing Sinomine.

With these contracts, the company has secured demand for the project’s initial production and positioned itself as an emerging force in the global lithium supply chain.

Boosted by a $15m interest-free loan from the WA Government as part of a broader $150m lithium industry support program, the loan continues to support ongoing operations at the project.

To further assist the project’s ramp-up phase, the WA Government also approved a waiver of port fees and charges and mining tenement fees for up to 24 months.

Open pit mining at the site commenced mid last year, with the transition to underground production beginning in April 2025. Underground mining offers key advantages including minimal waste removal and contamination reduction.

WA Mines and Petroleum Minister David Michael says the opening of the project is attracting skilled workers and strengthening local development.

“We are working with industry to ensure WA remains a global leader in the lithium-ion battery supply chain, with our lithium industry support program helping the sector navigate global market fluctuations,” he said.

Liontown has also successfully drilled two holes, with support from the WA Government’s exploration incentive scheme, to improve the company’s understanding of the site’s geology.

The Kathleen Valley project is a tier-1 battery metals asset with high-grade ore and scale, it has an anticipated mine life of more than 20 years.