Lithium miner at ‘inflection point’ despite latest loss
A local battery mineral miner is at an inflection point as its flagship project is shaping up to deliver a major production upgrade, its leader says.
Liontown Resources reported a loss of $184.1 million in the first half, compared to a loss of $15.6 million in the same period.
Tomorrow marks a “turning point” for Western Australian businesses, CEO Tony Ottaviano said on Thursday.
“First of all, Kathleen Valley is delivering as designed,” Mr. Ottaviano told analysts in an earnings briefing.
“We completed the transition to 100 percent underground mining in the first half and generated over $208 million in revenue, more than double the previous period.”
The Perth-based miner’s production of spodumene, the main source of lithium, increased by 70 percent to 193 kilotonnes.
The price of lithium rose in the second half of 2025 due to a projected supply glut and concerns about electric vehicle demand in China being overblown.
“We are noticing higher prices, they continue to strengthen in the second half,” Mr. Ottaviano said.
“The market is also helping: We are now seeing BESS (battery energy storage systems) emerging as a second demand engine alongside electric vehicles.”
With new projects facing years of approval and planning and lithium demand continuing to rise, accessing and restarting several legacy projects has given Liontown a major competitive advantage.
“Which brings me to the four-million-ton expansion underway in the Kathleen Valley,” Mr. Ottaviano said.
“This is a growth option from a business asset, and there are few around the world that can bring additional tons to market as quickly as this option.”
Liontown’s underlying loss was $7.7 million; this was an improvement from $10.7 million in the previous half.
Its $184 million statutory loss included a $104 million accounting charge incurred because of the convertible note deal, which was hit by a more than half-doubling of Liontown’s share price.
“An estimated gain of $58 million is expected to be recognized upon conversion to equity, and this gain is expected to be reflected in full-year results,” Mr. Ottaviano said.
South Korea’s LG Energy sold its 7.5 percent stake in Liontown in a block trade in February but remains one of the miner’s biggest buyers, along with Ford and Tesla.
The miner left its 2026 forward forecast unchanged and predicted that rising oil prices due to the Middle East conflict would have minor impacts.
“We are 80 percent renewable,” Mr. Ottaviano said.
“On average, our total diesel cost is about four to five percent of our total cost base… so we’re pretty confident in that respect.”
Liontown’s share price fell nearly 2.7 percent to $1.59 by mid-afternoon; This was on par with a similar decline at rival PLS, along with the industry-wide collapse.
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