Wesfarmers and SQM approve Mt Holland lithium expansion
- Spodumene concentrate capacity to increase from ~380,000 tpa to 760,000 tpa on a 100% basis.
- New ore-sorting facility to recover stockpiles, adding approximately 3 million tonnes of spodumene concentrate over the operation’s life.
- Second concentrator construction expected to start in H2 2027, with first expanded volumes from H1 2030.
- Wesfarmers’ share of capex is estimated at $645–715 million (USD 450–500M), to be funded from existing cash and debt; approvals secured or underway.
Decision and scope
Wesfarmers and SQM, through their joint venture Covalent Lithium, have approved a final investment decision to expand the Mt Holland lithium project. The scope covers the mine, an additional concentrator and a new integrated ore sorting facility.
Production uplift
The expansion increases nameplate spodumene concentrate production from approximately 380,000 tonnes per annum to 760,000 tpa (100% basis). The ore-sorting facility will recover previously stockpiled material and is expected to add about three million tonnes of spodumene concentrate production over the life of the operation.
Schedule, cost and approvals
Construction of a second concentrator is expected to commence in the second half of calendar 2027, with first expanded spodumene concentrate volumes anticipated in the first half of calendar 2030. Wesfarmers’ share of capital expenditure is estimated at $645–715 million (USD 450–500 million) in nominal terms, excluding capitalised interest, and will be funded from existing cash and debt facilities. Necessary government and regulatory approvals have either been secured or are underway.
Commercial position
The expanded volumes are expected to be sold as spodumene concentrate and provide optionality to supply any future downstream expansion at Covalent Lithium’s Kwinana refinery. Wesfarmers says the expansion will deliver economies of scale, lower unit costs, accelerate cash flows and improve the project’s position on the cost curve. Further updates will be provided at Wesfarmers’ full‑year results in August 2026.
Source: wesfarmers.com.au
