Australia's Covalent Lithium has begun hydroxide output at its 50,000 t/yr Kwinana refinery, the firm said today, confirming commissioning has progressed to the production phase.
The update follows the firm's announcement last month that major construction was complete and commissioning was under way.
The plant's capacity of 50,000 t/yr would provide enough lithium for 1mn EV batteries per year, the firm said, assuming 50kWh battery packs.
"We're now focused on safely ramping up production and delivering reliable, high-quality battery-grade product" said chief executive Ross Martinelli. "In the immediate-term, commercial samples are being prepared for product qualification."
The Kwinana plant is Australia's third lithium hydroxide refinery, joining IGO-Tianqi's Kwinana facility and Albemarle-Mineral Resources' Kemerton plant, which both began production in May 2022, albeit facing the challenge of ramping up during lower market prices.
As a joint venture between Australian conglomerate Wesfarmers and Chilean lithium firm SQM, Covalent has long positioned itself as a vertically-integrated lithium producer.
Its Mount Holland mine and concentrator feed the Kwinana refinery, but plans to expand the mine remain on hold due to cost uncertainty and shareholder caution.
The firm first flagged commissioning progress in February, when Wesfarmers said it was "cautiously optimistic" about overcoming technical challenges at the site. At the time, analysts had raised concerns about Western Australia's limited processing expertise, echoing comments from Albemarle's chief executive.
Covalent's lithium business has consistently posted losses, with Wesfarmers reporting a A$24mn deficit last August.
The company has also yet to confirm a timeline or budget for its previously proposed capacity expansion to 100,000 t/yr of lithium hydroxide and 760,000 t/yr of concentrate.
