Australia’s Liontown Resources (ASX: LTR) said on Thursday it had sent the first cargo of spodumene concentrate from the Kathleen Valley lithium mine under a long-term offtake agreement. 

The shipment, totalling about 33,000 wet metric tonnes (wmt), departed the Port of Geraldton on Wednesday. Of this, 11,000 wmt were delivered to LG Energy Solution, a major supplier of lithium-ion batteries, with the remainder allocated to a short-term customer. The concentrate boasts a weighted average grade of 5.2% lithium oxide.

This marks Liontown’s fourth shipment and its largest since production began in July at the company’s flagship Kathleen Valley lithium operations.

“We have now shipped one cargo per month since our first cargo in September, generating revenue and demonstrating continued progress on our ramp up toward becoming a reliable, major supplier of lithium to the global market,” managing director and chief executive Tony Ottaviano said in the statement.

Rough times

Lats month, the Perth-based lithium producer trimmed its production plans, announced cutting measures, and deferred expansion efforts in response to low lithium prices.

The mine came online amid a severe slump in global lithium prices, which has led to the closure of other operations in Australia, including Arcadium Lithium’s Mt Cattlin, which is in the process of being bought up by Rio Tinto (ASX: RIO), and Core Lithium’s (ASX: CXO) Finniss project.

Liontown now targets a production rate of 2.8 million metric tonnes per annum by the end of the 2027 fiscal year, down from its initial goal of 3 million tonnes by the first quarter of 2025.

Global lithium markets are grappling with an oversupply, as rapid production growth outpaces demand for the battery metal. This imbalance coincides with a slowdown in electric vehicle sales growth, further pressuring the market.

Source: MINING.COM – Read More