Liontown Resources (ASX:LTR) share price is up 5% today on the back of news of an opportunity to expand initial plant capacity at Kathleen Valley, with an updated capital estimate reflecting scope changes and industry-wide cost escalation.
Liontown Resources says Kathleen Valley is one of the most significant new long-life lithium projects being constructed in the world, and with a portfolio of three Tier-1 foundation customers, is ideally positioned to capitalise on strong forecast demand for lithium raw materials.
It says the plant capacity design can deliver a 20% increase in the initial plant throughput rate to 3Mtpa (up from 2.5Mtpa), driving increased production.
Liontown Resources says since on-site construction activities began in October last year, its made rapid progress across all aspects and remains on schedule to deliver first production from the process plant to market by the middle of next year.