Liontown emerges from lithium winter as Kathleen Valley ramps up

Liontown Resources (ASX: LTR) has emerged from one of the toughest periods the lithium industry has faced in years, with Kathleen Valley now fully underground and the company preparing to invest again. CEO Tony Ottaviano says strong operating cash flow and EBITDA were among the key financial takeaways from FY26, while operationally the company completed its transition from open-pit mining and continued ramping up underground production at Kathleen Valley. The shift comes as the backdrop for lithium has changed dramatically. After spodumene prices fell to around US$600 a tonne during the downturn, prices have since recovered to more than US$2,000 a tonne. For Ottaviano, the important question is whether this recovery has staying power. “Inventory levels of one of the largest lithium chemicals, being lithium carbonate, are at an all-time low. We haven't seen levels like this since the back end of 2024.” In the interview above, Ottaviano explains why he believes the lithium recovery could run for another 12–18 months or longer, why Liontown’s costs remain elevated despite the Kathleen Valley ramp-up, and why he believes underground mining will ultimately give the company a competitive advantage. Please note, this interview was recorded Monday 30 August, 2026 TIME CODES 00:00 – Introduction 00:20 – The key numbers from Liontown’s FY26 result 00:59 – Why this lithium recovery could be different 02:55 – What’s driving higher costs at Kathleen Valley 03:56 – Why FY27 production growth looks modest 04:46 – The case for underground mining and higher sustaining capital 06:50 – What Liontown needs to do better in FY27