Covalent Lithium achieves first product at Kwinana lithium hydroxide refinery

Covalent Lithium announced today, that following completion of its internal validation processes, it can confirm in July 2025 it produced its first battery-grade lithium hydroxide at its refinery in Kwinana, Western Australia.

The commencement of production at the refinery is a pivotal moment in the development of Covalent Lithium’s fully integrated mine-to-refinery operation, which will supply battery-grade lithium hydroxide to global markets, including the growing electric vehicle industry.

Achieving first product is the result of years of planning, engineering, and construction, and reflects the capability, dedication and collaboration of Covalent Lithium’s project team and partners.

While this is a significant step forward, it is also the beginning of the next phase. With first production achieved, the operation is expected to ramp-up to 50,000 tonnes per annum nameplate capacity over the next 18 months.

Covalent Lithium CEO Ross Martelli said the achievement reflected years of dedicated work across the business.

“This is a major achievement for the project,” Mr Martelli said.

“Pleasingly, construction and commissioning was completed within the cost guidance provided by our shareholders in early 2023.”

“The plant is performing as expected during early-stage production, enabling us to safely deliver first product to the refinery design specification.”

“This is a positive first step in our production ramp up phase, with the early, strong performance highlighting the capability and dedication of the entire team.”

“We’re now focused on safely ramping up production and delivering reliable, high-quality battery-grade product. In the immediate term, commercial samples are being prepared for product qualification.”

The Kwinana refinery supports the Australian Government’s Future Made in Australia and Western Australia’s Battery and Critical Minerals Strategy by strengthening local critical minerals processing capabilities. Covalent Lithium will play an important role advancing Australia’s position in global clean energy supply chains.

At full production, the operation will support the manufacture of batteries for approximately one million electric vehicles each year.

Covalent Lithium is a 50:50 joint venture between Wesfarmers Limited and Sociedad Química y Minera de Chile (SQM).

Covalent Lithium operational update – 23 July 2025

Perth, Australia – Covalent Lithium, a 50:50 joint venture between Wesfarmers and Sociedad Química y Minera de Chile (SQM), has today provided an update that:

• Major construction at its Kwinana lithium hydroxide refinery is complete, marking a significant milestone in the development of a fully-integrated lithium operation in Western Australia. Finalisation of commissioning activities is ongoing.

• While Covalent continues to progress engineering and approvals for an expansion of the Mt Holland mine and concentrator, a final investment decision on the expansion will not be made in the 2025 calendar year.

Covalent Lithium CEO Ross Martelli said the completion of construction is the culmination of several years of engineering, planning and execution at the Kwinana refinery, and reflects the dedication and capability of the entire project team and its delivery partners.

“The completion of major construction at the refinery is a fantastic achievement and a testament to the commitment of the Covalent team and contractors who have worked to deliver a complex project safely and to a high standard,” Mr Martelli said.

“The focus is now on finalising commissioning activities and safely delivering first product, including meeting the stringent quality requirements for the electric vehicle battery market, before commencing ramp-up to nameplate capacity.”

"Once fully operational, the Kwinana refinery is expected to produce approximately 50,000 tonnes of battery-grade lithium hydroxide per year, contributing to the growing global demand for electric vehicles.”

“At the Mt Holland site, the mine and concentrator continue their positive ramp-up, with production pushing north of 80 per cent capacity in calendar year 2025, as previously indicated.”

Covalent is also continuing to progress engineering studies and work to secure environmental and regulatory approvals for the expansion of the Mt Holland mine and concentrator.

A final investment decision on the expansion is not expected in the 2025 calendar year. The expansion will continue to be considered by Covalent’s shareholders and remains subject to the lithium market context, completion of the relevant technical and financial evaluations and approvals and successful commissioning of the refinery.

Covalent Lithium Mt Holland Mine resumes normal operations following major bushfire emergency

The Mt Holland mine site has resumed normal operations and returned to mains power following last Friday's bushfire emergency.  

The bushfire rapidly escalated due to strong winds and extreme heat and expanded from an initial containment area of 600 hectares to 110,000 hectares within eight hours. The fire devastated over 40,000 hectares of Wheatbelt bushland and created a perimeter spanning 173 kilometres. 

The emergency response involved a coordinated effort from multiple agencies across Western Australia. Volunteer and career firefighters from the Perth metropolitan area, Goldfields, and Wheatbelt regions worked alongside the State Emergency Service (SES), Department of Biodiversity, Conservation and Attractions (DBCA), Parks and Wildlife Service, and local government authorities to contain the fire. 

“The professional response from the Department of Fire and Emergency Services (DFES) and supporting emergency services was exceptional,” said Ryan Hair, CEO.  

“Their coordinated efforts, along with our emergency response teams, local contractors Aerlink, Decmil, MMS & Thiess, and the support from Forrestania Operations' Emergency Response Team, were vital in ensuring the safety of our people and the protection of our infrastructure." 

"Cater Care also provided exceptional support services during the emergency, positively impacting the team's well-being."  

DFES personnel will remain on-site to support and monitor fires in the surrounding areas in the short term.

Covalent Lithium personnel and infrastructure safe following bushfire near Mt Holland operations

The immediate threat from a severe bushfire near Covalent Lithium’s Mt Holland site on Friday, 25 January 2025, has passed with all personnel safe and critical site infrastructure undamaged.

Fires continue to burn in surrounding areas, and the Department of Fire and Emergency Services (DFES) is still active in the area.

“Keeping our team members safe was our primary concern, along with protecting our site assets and equipment,” said Covalent Lithium CEO Ryan Hair.

“I’d like to recognise our amazing emergency and incident response teams who effectively implemented our emergency response protocols, as well as the incredible support we received on-site from DFES.”

“All team members and contractors on site remained calm and professional throughout the incident and also deserve recognition.”

Surrounding Western Power infrastructure did sustain damage, and as a result, the site is operating on backup power. Power restoration and a progressive restart of the operation are expected over the coming week.

Covalent Lithium will continue to monitor the site and surrounding fire conditions and work closely with local emergency services.