Mineral Resources, Ganfeng Approve $352 Million Lithium Plant, Underground Investment — Update

By Rhiannon Hoyle

Mineral Resources and Ganfeng Lithium Group approved plans to build a flotation plant and develop underground mining at the Mt. Marion lithium operation in Western Australia, aimed at tapping deeper, high-grade ore and improving plant recoveries.

The projects will cost a combined 490 million Australian dollars, equivalent to US$352 million, Mineral Resources said in a statement Tuesday.

The miner said the capital investment will be made across fiscal years 2027 and 2028, and that the payback period at current spodumene prices was less than a year. Spodumene is a key source of lithium, used in batteries for electric vehicles, electronics and energy storage systems.

Lithium prices, while still far below their 2022 record highs, have risen sharply since late last year, supported by stalled supply growth and robust demand.

The investment at Mt. Marion will help the companies access additional mineral resources below the existing open pit.

"Underground mining and flotation will work together to access deeper, high-grade ore, lift recoveries and produce a single 5% product," said Managing Director Chris Ellison.

"This high-return brownfield investment sets up Mt Marion for decades to come," he said.

Earlier this month, Mineral Resources also said it would restart idled operations at the nearby Bald Hill lithium mine, citing a significant and sustained recovery in lithium prices.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

May 25, 2026 19:41 ET (23:41 GMT)