Business · Markets · 6 hrs ago
Liontown shares fall 77% as lithium prices slump
Shares in Australian lithium miner Liontown have fallen 77% from their May peak of $2.64 to 60 cents.
The decline has closely tracked lithium prices, which dropped about 54% from an early-May high to early November.
Weaker demand and concerns about oversupply have weighed on lithium, with prices in China reaching a 12-month low.
The European Union plans to cap imports of Chinese hybrid electric vehicles from 2027, while higher lithium inventories and new supply from Australian mines have added to market concerns.
Liontown also faces questions about its $389 million Kathleen Valley expansion, approved in late September to increase future production.
The project is self-funded, but investors may question the spending while lithium prices are weak.
Analysts are mostly positive on Liontown shares, with average price targets of $1.02 to $1.06, though those are forecasts rather than guarantees.
Liontown shares have fallen 77% from their May 1 peak as lithium prices slumped.
The shares reached $2.64 before dropping to 60 cents at the time of the article.
Lithium carbonate prices in China fell to a 12-month low of about CNY 93,000 per tonne by early November.
The article links the decline to softer demand concerns, market oversupply and increased supply from Australian producers.
Liontown’s board also approved a $389 million expansion at its Kathleen Valley site in late September.
- Who
- Liontown Ltd, an Australian lithium miner.
- What
- Its shares fell 77% from their May peak, amid a slump in lithium prices.
- When
- From May 1 to early November 2026.
- Where
- Liontown is listed on the ASX; the article cites lithium carbonate prices in China.
- Why
- The article attributes the fall mainly to lithium price movements, amid concerns about softer demand and oversupply. Investors also had concerns about a planned capital expenditure.
This story does not have two clearly opposing sides.
Liontown shares rallied before reaching a multi-year peak.
The shares peaked at $2.64 as lithium prices reached a two-year high.
Liontown’s board approved a $389 million expansion project at Kathleen Valley.
Liontown shares stood at 60 cents, while lithium carbonate prices in China were about CNY 93,000 per tonne.
- Share price peak
- $2.64 on May 1, 2026
- Share price at time of article
- 60 cents
- Decline from peak
- 77%
- China lithium carbonate price
- About CNY 93,000 per tonne in early November
- Kathleen Valley expansion
- $389 million
- Target production
- 780,000 dmt a year on a five-year average from FY30