Two Major Lithium Mining Projects Green Lit in Australia

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Australia's drive to produce more critical minerals continues to ramp up as two lithium mining projects in Western Australia, Mount Holland and Mount Marion, have been cleared to begin.

Two major lithium mining projects in Western Australia, Mount Holland and Mount Marion, have been cleared to advance as Australia makes a big push to produce more critical minerals. 

The Australian government has cleared the massive Mount Holland lithium mine to start work on doubling its production capacity while miner Mineral Resources (MinRes), in partnership with China's Ganfeng Lithium, have taken a final investment decision to invest A$490 million (US$352 million) to expand its Mount Marion lithium operation.  According to Industrial Info Resources data, there are more than 60 active lithium mining-related projects in Australia with a combined investment value of almost US$6 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports. 

Mount Holland To Double Output

Mount. Holland is 50:50 owned by Chilean lithium major Sociedad Química y Minera de Chile (SQM) and Wesfarmers Limited. Regulatory filings show that the goal is to bump production capacity to 4.4 million tons of spodumene per annum, by exploiting existing and new deposits. The mine produces spodumene concentrate for export, in addition to roughly 50,000 tons of battery-grade lithium hydroxide yearly. The latest spike in  Australia's lithium mining sector comes hot on the heels of news that Hancock Prospecting, owned by Australia's richest person, Gina Rinehart, aims to begin constructing a US$1 billion lithium mine in Andover, Western Australia, in 2028. Formerly owned by Azure Minerals, it will be built in a joint venture with SQM. For additional information, see April, 2026, article - Key Lithium Project in Australia Moves Forward.

Mount Marion's Significant Expansion

The partners plan a "significant expansion" of existing operations, and thanks to the high price of lithium, they expect payback on their planned US$352 million investment "in less than a year." The money will cover building a flotation plant, the development of an underground mine and the addition of non-processing infrastructure. MinRes managing director Chris Ellison said: "This high-return brownfield investment sets up Mt. Marion for decades to come. Underground mining and flotation will work together to access deeper high-grade ore, lift recoveries and produce a single 5% product." 

Lithium Prices Strong

Globally, lithium prices have been experiencing strong growth, hitting levels not seen since 2023. This has been boosted by lithium export restrictions imposed by Zimbabwe in February, as well as higher demand from low-carbon industries and, in particular, electric vehicle (EV) demand, sparked by the ongoing global oil and gas crisis caused by the war in Iran. Australia, the world's largest supplier of hard rock lithium, has seen a growing number of lithium mine restarts and new mining expansions in recent months. 

Key Takeaways

• Expansion projects at the Mount Holland and Mount Marion lithium mines are to go ahead.
• High lithium prices have sparked a number of lithium mine restarts and new projects in Australia.
• Industrial Info Resources is tracking 60 active lithium mining-related projects in Australia with a combined investment value of almost US$6 billion. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).