Wesfarmers, SQM Approve Mt Holland Expansion

Wesfarmers and SQM have approved a final investment decision to expand the Mt Holland lithium project in Western Australia, aiming to double nameplate production to about 760,000 tonnes per year and add a second concentrator plus an integrated ore sorting facility. The expansion, delivered through Covalent Lithium, is expected to lower unit operating costs and accelerate cash flows across the life of the mine. Wesfarmers’ share of project capex is estimated at around A$645 million to A$715 million, to be funded from existing cash and debt facilities. Construction of the new concentrator is planned to begin in the second half of 2027, with first production from the expansion targeted for the first half of 2030. The project also seeks to unlock additional stockpiled material via the ore sorting facility, adding about 3 million tonnes of concentrate over the mine’s life, and retains optionality for downstream integration at Covalent Lithium’s Kwinana refinery. The move reflects a broader strategy to strengthen the lithium supply chain as demand for battery-grade materials remains robust.