Liontown Resources (ASX:LTR) has commenced early works and long-lead procurement at its flagship Kathleen Valley Lithium Project.
The move precedes a formal final investment decision, which is currently anticipated by the end of the first quarter in FY27.
By initiating these works ahead of schedule, the company aims to capitalise on the market’s trajectory and unlock additional production capacity through a staged development approach.
Central to this expansion phase is the $12 million procurement of a 5.5MW ball mill, a critical infrastructure component designed to enhance plant throughput and improve grind size control.
Given the approximate 12-month lead time for such machinery, locking in this purchase now ensures that incremental capacity can be released as soon as possible.
Beyond the ball mill, the programme includes pre-development drilling at the Northwest Flats orebody to refine grade control modelling and the construction of the first stage of a permanent mine services area to support an expanded mining fleet.
Liontown projects a cash expenditure of $15–18 million for the FY26 early works programme, with total expenditure leading up to the FID expected to reach approximately $77 million.
The expansion also involves underground development at Northwest Flats, including the establishment of ventilation and power infrastructure.
At the time of reporting, Liontown Resources’ share price was $2.38.