Covalent Lithium joint venture partner Sociedad Química y Minera de Chile S.A. (SQM) has delivered a confidence-boosting update on progress at the Mt Holland mine and Kwinana lithium hydroxide refinery in Western Australia.
SQM, which partners with WesCEF – the chemicals division of Wesfarmers – in the Covalent Lithium joint venture, outlined the projects’ performance in its 2025 earnings report.
The company said the Mt Holland mine and concentrator delivered strong operational results, while the Kwinana refinery continues to progress through its ramp-up phase. Excess spodumene concentrate has been sold directly into the market during this period.
“We observed a price inflection in spodumene concentrate beginning in early November 2025,” SQM said.
“As is typical in the lithium market, prices have remained volatile, although within a stronger overall pricing environment.
“Looking ahead to 2026, we expect to maintain full production at the mine and concentrator, continue advancing the ramp-up of the Kwinana refinery, and further progress our exploration initiatives both in Australia and internationally.”
SQM’s update follows a similarly positive assessment from Wesfarmers in its 2026 half-year report for the six months ended 31 December 2025.
“WesCEF’s earnings benefited from a positive contribution from its lithium business, supported by the strong performance of the mine and concentrator and a significantly improved pricing environment later in the half,” Wesfarmers said.
WesCEF reported its share of spodumene concentrate production at 98,000 tonnes (98kt), with performance improving throughout the period. The lithium business contributed $6 million in earnings to Wesfarmers, inclusive of its share of Covalent Lithium corporate and overhead costs.
Construction of the Kwinana refinery was completed below initial cost estimates, with commissioning producing high-quality lithium hydroxide. First product was achieved in July 2025.
Production ramp-up has been extended to address intermittent odour issues, with engineering works underway and scheduled for completion by mid-2026. During the ramp-up phase, excess spodumene concentrate continues to be sold profitably. Costs incurred during ramp-up will continue to be capitalised until commercial production is achieved.
The update from Covalent Lithium comes amid broader challenges in Australia’s lithium refining sector, following US-based producer Albemarle’s decision to place its Kemerton lithium hydroxide processing plant in Western Australia into care and maintenance.
Albemarle confirmed it would idle operations at Kemerton immediately, after previously cancelling expansion works for Trains 3 and 4 and placing the site’s second production train on care and maintenance. More than 250 jobs are expected to be lost, with contractors also affected.
Albemarle chairman and chief executive officer Kent Masters described the move as a difficult but necessary step amid prolonged lithium price volatility.
“Idling operations at Kemerton was a difficult decision. It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market,” Masters said.
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