Covalent Lithium completes construction and commissioning at Mt Holand and begins production of spodumene concentrates 

The Mt Holland mine has completed construction and commissioning and began the process of ramping-up spodumene concentrate production. The mine, operated by SQM and Wesfarmers’ joint venture Covalent Lithium, is targeting the production of 100kt spodumene concentrates by the end of June 2024, with full capacity targeted at 380ktpy spodumene concentrate. The commissioning of the Mt Holland mine has bucked the recent trend of Australian spodumene concentrate producers curtailing or suspending production as prices for lithium compounds and concentrates have fallen. Australian spodumene production is forecast to exceed 500kt contained LCE in 2024, though growth between 2023 and 2024 is expected to be relatively meagre at <3% as a result of curtailed production at several operators.

Covalent is also developing the Kwinana lithium refinery which is planned to process spodumene concentrates from the Mt Holland mine to produce up to 50ktpy Lithium hydroxide at capacity. Construction at the refinery is scheduled for completion in late 2024, with commissioning and first production achieved in H1 2025. The Kwinana refinery would be the third lithium hydroxide plant commissioned in Western Australia, after Albemarle’s Kemerton plant and Tianqi Lithium’s Kwinana plant which have been in operation since 2022.