New Lithium Mine Opens in Australia Despite Price Decline

Australia's first dedicated underground lithium mine, Kathleen Valley, is now officially open, despite the recent plunge in lithium prices. The mine is focused on the long-term future, and its opening is seen as a significant milestone in the country's lithium mining industry.

Australia's first dedicated underground lithium mine, Kathleen Valley, has officially opened despite the recent plunge in lithium prices. The mine, located in Western Australia's northern Goldfields, is a significant milestone in the country's lithium mining industry.

The $951 million Kathleen Valley lithium mine, owned by Perth-based Liontown Resources, was officially opened by federal Resources Minister Madeleine King and WA Mines Minister David Michael on July 10, 2025. The mine employs about 450 workers and supplies lithium to electric car manufacturers Tesla and Ford, as well as South Korean battery giant LG Energy Solutions [1].

The mine has enough reserves to operate for 23 years but has faced a challenging period due to low lithium prices. The WA government provided a $150 million support package to help the industry weather the storm. Liontown Resources managing director Tony Ottaviano remains optimistic about the future, citing the increasing uptake of electric vehicles and home battery storage as key drivers for demand [1].

The Kathleen Valley mine has faced a baptism of fire amid low lithium prices, which has led to the closure of two WA mines in the past nine months. However, the WA government's funding is designed to help the industry through the current downturn. The mine's geology superintendent Lincoln Young and open pit manager Peter Dunstan oversee the operations [1].

Global lithium prices have plummeted in recent years, falling to $US610 a tonne in June from highs of $US6,500 in 2022. Liontown Resources achieved an average sales price of $US815 a tonne for spodumene concentrate in the March quarter. Newly released forecasts by the Office of the Chief Economist expect prices to remain subdued until at least 2027, with global lithium demand growing by almost 15 per cent a year [1].

The Kathleen Valley mine is 80 per cent powered by renewables, including wind turbines. The mine's opening is seen as a critical step in Australia's transition to a low-carbon economy, with the federal government considering lithium for its proposed Critical Minerals Strategic Reserve [1].

References:
[1] https://www.abc.net.au/news/2025-07-10/new-wa-lithium-mine-officially-opened-amid-low-prices/105500082