Overview of Lithium Mining Projects in Australia

Overview of Lithium Mine Production Capacity in Australia
Australia currently operates six lithium mines: Greenbushes, Pilgangoora, Mt Marion, Wodgina, Mt Holland, and Kathleen Valley. The total operational capacity announced for 2025 stands at 4.403 million tonnes, with Q1 2025 production reaching 829,000 tonnes. Converted to SC6 lithium concentrate, this equates to 747,000 tonnes, reflecting a 15.9% quarter-on-quarter decline but a 2.6% year-on-year increase.

Specifically, production dropped at Greenbushes and Pilgangoora due to lower ore grades and the commissioning of new lines. In contrast, production rose at Mt Marion, Wodgina, and Kathleen Valley. Notably, Mt Marion raised its FY2025 production target by 70,000 tonnes, while other major mines maintained original production plans.

Additionally, high-cost operations are exiting the market at a slower pace. Only a few smaller players, such as Bald Hill and Cattlin, have suspended operations or announced exit plans. Most large producers continue running at high capacity and focusing on cost-cutting strategies to weather the industry downturn.

II. Project Introduction

1. Greenbushes – Tianqi Lithium / Albemarle

Greenbushes is one of the world's largest sources of lithium concentrate, with lithium hosted in hard-rock spodumene ore. The mine is operated by Talison Lithium, a wholly owned subsidiary of Windfield Holdings. Tianqi Lithium Corporation holds a 51% stake in Windfield, while Albemarle owns the remaining 49%. In 2021, Tianqi Lithium and IGO Limited formed Tianqi Lithium Energy Australia (TLEA), with Tianqi holding 51% and IGO 49%.

For FY2025, Greenbushes has set a lithium concentrate production guidance of 1.35-1.55 million tonnes. In Q1, its production reached 342,000 tonnes, down 13% quarter-on-quarter but up 22% year-on-year, impacted by lower feed grades. Sales reached 366,000 tonnes, up 17% QoQ and doubling YoY, as some Q4 shipments were delayed to January due to port congestion. The average FOB selling price rose 7.47% QoQ to $791/tonne. Cash costs increased 5% QoQ to AUD 341/tonne, but fell 12% YoY. Recovery rates continued to improve, with CGP1 exceeding 80% and CGP2 above 70%.

Greenbushes' operational capacity includes the fully commissioned Chemical Grade Plants 1 and 2 (1.2 million tonnes combined) and a 280,000-tonne tailings reprocessing facility, totaling 1.55 million tonnes. Key ongoing projects are CGP3 and tailings storage expansion. CGP3, launched in 2018 and slated for mid-2025 completion, is expected to deliver its first concentrate in Q4 2025.

Meanwhile, the Kwinana lithium hydroxide plant produced 1,562 tonnes in Q1 2025, down 2% quarterly but up 64% annually, with utilization at 26% due to unplanned downtime and equipment failures in February. Daily production is expected to remain stable until repairs are completed in May.

2. Pilgangoora - Pilbara Minerals

Originally developed as a tantalum project, Pilgangoora's lithium potential began to emerge in 2014. It is now wholly owned by Pilbara Minerals.

Following the commissioning of the P680 expansion, the project's annual lithium concentrate capacity has reached 680,000 tonnes. With the phased ramp-up of the P1000 project beginning in Q1 2025, capacity is expected to gradually rise toward the long-term target of 1 million tonnes per year at a 5.7% grade.

For FY2025, Pilbara Minerals revised its production guidance to 700,000-740,000 tonnes, down from the previous 800,000-840,000 tonnes. In Q1 2025, lithium concentrate production fell to 125,000 tonnes (SC5.1), a 33.6% drop QoQ and a 30.2% decrease YoY. The mine transitioned to P850 operations in Q4 2024, while the Ngungaju plant was offline for maintenance. The production ramp-up at P1000 and disruptions from tropical storms also contributed to the decline. Lithium recovery fell to 67.2%, down from 72.1% in the previous quarter, though slightly above the 65.3% recorded a year earlier. This impact is expected to be temporary.

Sales volumes in Q1 reached 125,500 tonnes (SC5.2), down 38.5% QoQ and 23.9% YoY. The average spodumene concentrate price rose 7% quarterly to $851/tonne (CIF China, SC6; SC5.3 priced at $747/tonne). Operating costs, inclusive of freight and royalties, rose 4% QoQ to $499/tonne on a delivered basis. The P1000 project produced its first ore in late January and is progressing on schedule.

3. Mt Marion - Mineral Resources / Ganfeng Lithium

Mineral Resources operates all mining activities and runs the onsite concentrate plant, which reached a capacity of 450,000-480,000 tonnes per year by the end of 2022. The project now boasts an annual processing capacity of 600,000 tonnes (SC6) and is jointly owned by Mineral Resources (50%) and Jiangxi Ganfeng Lithium (50%), a global leader in lithium hydroxide production.

In Q1 2025, Mt Marion produced 140,000 tonnes of lithium concentrate, up 21% quarter-on-quarter but down 23% year-on-year, with an average product grade of 4.3%. Shipments totaled 138,000 tonnes (SC4.4), up 25% QoQ and down 9% YoY -- equivalent to 102,000 tonnes of SC6, a 24% QoQ rise and 2% YoY decline. The average selling price for SC4.4 was $845/dmt, while SC6 averaged $633/dmt.

FOB cash costs for SC6 concentrate stood at AUD 708/tonne in Q1, down from AUD 961/tonne over the first three quarters of FY2025. Higher ore grades led to improved recovery rates. The full-year production guidance for FY2025 was raised by 70,000 tonnes to 370,000-400,000 tonnes (SC4.1). With ongoing cost-reduction measures and further recovery improvements expected, Mt Marion's full-year SC6 cost guidance remains at AUD 870-970/tonne.

4. Wodgina - Mineral Resources
Located about 100 km southeast of Port Hedland in Western Australia, the Wodgina lithium project was initially fully owned by Mineral Resources. In August 2019, the company entered into a joint venture with Albemarle Corporation under a 60:40 ownership split. This was revised in Q3 2023 to a 50:50 partnership.

Wodgina's FY2025 production guidance is set at 420,000-460,000 tonnes of lithium concentrate (SC6). In Q1 2025, the mine produced 126,000 tonnes, marking a 17% quarter-on-quarter and 29% year-on-year increase, with an average grade of 5.3% Li2O (down from 5.7% in the previous quarter). Sales for the quarter totaled 118,000 tonnes, down 3% QoQ and 8% YoY, with an average Li2O grade also at 5.3%.

The average sales price, adjusted to SC6, was $846/tonne, up 1.4% QoQ; for the actual grade of 5.3%, it was $750/tonne. FOB cash costs came in at AUD 775/tonne (SC6), while the average for the first three quarters of FY2025 was AUD 932/tonne. Full-year SC6-equivalent cost guidance remains at AUD 800-900/tonne, with the upper bound revised up AUD 10 from the previous quarter.

5. Mt Cattlin - Arcadium Lithium
The Mt Cattlin lithium project was initially developed and operated by Galaxy Resources Limited, with construction beginning in November 2009 and mining starting in June 2010. Operations were suspended in June 2012 but restarted in 2016 following a sharp rise in lithium prices. By March 2016, the project had ramped up to a capacity of 230,000 tonnes of lithium concentrate at a grade of 5.76%--equivalent to roughly 33,000 tonnes of LCE--with first shipments in July that year. Galaxy Resources merged with Orocobre in August 2021 to form Allkem, which was rebranded as Arcadium Lithium in January 2024.

On September 4, 2024, Arcadium announced it would halt Phase 4A waste stripping and Phase 3 expansion at Mt Cattlin. The mine is expected to complete Phase 3 mining and processing in H1 2025 before entering care and maintenance due to market conditions.

Mt Cattlin's design capacity stands at 220,000 tonnes of lithium concentrate annually, but current production falls short due to weak lithium prices. As of Q2 2024, the project's reported FOB cash cost was $788/tonne, equivalent to $892/tonne on an SC6 basis, placing it among the higher-cost operations in Australia.

6. Bald Hill - Mineral Resources
Originally a tantalum mine operated by Haddington Resources Ltd, the Bald Hill project ceased operations in 2005. Tawana Resources NL later acquired a 50% stake in 2016 and partnered with AMAL to develop spodumene concentrate production. In November 2023, Mineral Resources (MinRes) acquired full ownership and accelerated efforts to expand lithium production safely and responsibly.

Despite stable production following MinRes's takeover, Bald Hill remained one of Australia's smallest-scale operating lithium mines. In Q3 2024, higher feed grades pushed production up 8% quarter-on-quarter to 38,000 tonnes. However, due to persistently high operating costs, MinRes announced the project would enter care and maintenance in November 2024. As a result, FY2025 production guidance was slashed from 120,000-145,000 tonnes (SC6) to around 60,000 tonnes.

FOB cash costs for FY2025 are estimated at AUD 800-890/tonne, equivalent to approximately $518-576/tonne.

7. Finniss - Core Lithium
Core Lithium secured initial tenure over the Bynoe pegmatite field in 2016 and released its first mineral resource estimate for the Finniss project in mid-2017. Within six years, the project reached a final investment decision and secured long-term offtake agreements with Sichuan Yahua and Ganfeng Lithium. However, amid sustained lithium price declines, Core Lithium halted mining operations at Finniss on January 5, 2024. A five-day shutdown led to a 14% drop in production, with the ore processed during the quarter. Final sales are expected in Q3 2024, with residual inventory anticipated to be cleared by June.

As of Q3 2024, Finniss held stockpiles of 5,178 tonnes (wet) of spodumene concentrate and 75,000 tonnes (wet) of fines, scheduled for sale in the first half of 2025. A study on restarting operations is also expected in H1 2025.

The Mt Finniss project was designed for 197,000 tonnes of annual spodumene production with an eight-year mine life. With operations now suspended, there are no near-term shipping plans. Historically one of Australia's higher-cost lithium projects, Finniss saw a significant cost drop in 2024 after mining activities were suspended. While full-process cash costs approached $1,000/tonne, Q2 2024 costs fell to $420/tonne with only stockpile processing underway.

8. Mt Holland - SQM/Wesfarmers

The Mt Holland lithium project was acquired by Kidman Resources in July 2016. In 2017, SQM acquired a 50% stake in the project, and in 2019, Wesfarmers acquired Kidman Resources, thereby taking over its 50% stake in the joint venture. The project is now developed and operated by Covalent Lithium, a 50:50 joint venture between SQM and Wesfarmers. Initial production was expected by the end of 2023, with first profits projected in the first half of 2024.

Mt Holland is designed with an annual nameplate capacity of 383,000 tonnes of spodumene concentrate at a grade of 5.5% Li2O, processing approximately 2 million tonnes of ore per year. The project has an estimated mine life of 50 years, which would be reduced to 25 years if production scales up to 760,000 tonnes per year.

In FY2024, Mt Holland achieved 110,000 tonnes of spodumene concentrate production, exceeding the guidance provided in the Q4 2023 results. The production guidance for FY2025 is between 300,000 and 340,000 tonnes. Actual sales volumes will depend on prevailing market prices and inventory management, as the concentrate will supply a future lithium hydroxide processing plant.

Wesfarmers remains optimistic about the long-term returns of the Mt Holland project. In FY2024, Covalent submitted regulatory applications for environmental approval to expand both the mine and concentrator capacity.

9. Kathleen Valley - Liontown Resources

The Kathleen Valley lithium project officially commenced production in mid-2024. In January 2023, plant design optimization increased processing capacity by 20%, enabling a nameplate throughput of 3 million tonnes per year at start-up (Q2 2024). This is expected to yield approximately 500,000 tonnes of spodumene concentrate annually at 6% Li2O grade. The project plans to ramp up further by Year 6 to 4 million tonnes per year of ore throughput, targeting an output of around 700,000 tonnes of concentrate annually. Mining is primarily conducted underground, allowing access to higher-grade ore while minimizing waste and reducing environmental impact.

Ore is processed through a whole-ore flotation circuit, with a targeted lithium recovery rate of 78% over the life of the mine. At full production, the annual production of lithium concentrate is expected to correspond to approximately 88,000 tonnes of lithium carbonate equivalent (LCE). In Q1 FY2025, Kathleen Valley produced 95,709 tonnes of spodumene concentrate, up 12% quarter-over-quarter. The average weighted Li2O grade was 5.2%, with recovery improving from 58% in the previous quarter to 64%. Sales volumes reached 93,940 tonnes, up 15% QoQ, also at an average Li2O grade of 5.2%.

The average sales price for the quarter was $815/tonne (SC6, FOB), up 1% from $806/tonne in Q4 FY2024. Operating costs dropped significantly to $512/tonne (FOB), a 21% decrease from the previous quarter's $652/tonne. The all-in sustaining cost (AISC) for the quarter was $678/tonne (SC6, FOB), down 11% QoQ.

Conclusion

In summary, major lithium projects in Australia have made varying degrees of progress in areas such as capacity expansion, cost control, and market sales. However, given the complexity and volatility of the global lithium market, Australian lithium mining companies must remain vigilant, continue to strengthen technological innovation, and expand market reach to effectively respond to potential challenges in the future.

Written by Cora Ji, jiruyan@mysteel.com