Wesfarmers approves $715M Mt Holland expansion

• Wesfarmers (ASX:WES) and partner SQM approved the final investment decision to expand the Mt Holland Lithium Project.
• Wesfarmers will fund its $715 million capital expenditure share using existing cash and debt facilities.
• The expansion aims to double production capacity to 760,000 tonnes annually while lowering unit operating costs.

Wesfarmers (ASX:WES) has approved an expansion at Mt Holland to double lithium concentrate production to 760,000 tonnes annually.

The joint venture operation currently produces approximately 380,000 tonnes of spodumene concentrate per year.

“This expansion improves its position on the cost curve,” said Wesfarmers Managing Director Rob Scott.

Wesfarmers stated its capital expenditure share will range up to $715 million.

Following the announcement, the Wesfarmers share price was down at $91.27.

The Perth-based conglomerate holds a 50% stake in Covalent Lithium alongside Chilean miner SQM.

The expansion includes a second concentrator and an ore sorting facility to boost long-term recovery.