Liontown Shares Drop 7% as Lithium Rout Deepens, Leaving Kathleen Valley Miner Down Nearly Half in a Year

SYDNEY — Shares of Liontown Ltd. fell 7% on Thursday as lithium stocks sold off across the Australian market, extending a steep decline for the Western Australian lithium miner.

Liontown shares closed down 5 Australian cents, or 6.99%, at A$0.665. The stock traded between A$0.655 and A$0.715, with more than 43 million shares changing hands. Liontown's market value stood at about A$2.1 billion.

The shares are down about 49% over the past year and more than 57% so far this year, making Liontown one of the worst performers on the S&P/ASX 200 index in 2026.

Lithium stocks slide

Gold and lithium stocks traded broadly lower on Thursday after a weak overnight session for commodity prices, according to Market Index. PLS Group, Australia's largest lithium producer, fell 8% after index provider MSCI said it would remove the company from the MSCI Australia Index.

The broader S&P/ASX 200 index closed 32 points lower, or 0.35%, after rallying 3.6% over the previous five sessions.

JPMorgan keeps buy rating

JPMorgan renewed its buy rating on Liontown on Monday but lowered its 12-month price target to 80 cents from A$1.10. The new target implies about 20% upside from Thursday's close.

Collapse since May

Liontown shares hit a multi-year high in early May, when lithium prices were at their strongest level in about two years. Since then, lithium carbonate prices in China have fallen sharply, and Liontown shares have fallen even further.

The decline has been driven by concerns about oversupply and softer demand for lithium used in electric vehicle and energy storage batteries.

Liontown is essentially a pure-play lithium company, so its fortunes depend heavily on lithium prices. Lithium carbonate prices drive the value of spodumene concentrate, the product Liontown ships from its Kathleen Valley mine.

Expansion scrutiny

Liontown approved a self-funded expansion of Kathleen Valley in September. The plan is drawing fresh scrutiny as lithium prices tumble, with investors questioning expansion spending during a downturn.

The company is building out underground mining at Kathleen Valley and has committed to an expansion that lifts planned capacity and spending.

Liontown reported revenue of A$199 million in the September quarter from sales of 82,000 tonnes of spodumene concentrate.

Kathleen Valley began processing lithium in July 2024.

Volatile trading

Liontown shares have been highly volatile in recent weeks. The stock jumped nearly 12% on Nov. 5, when lithium and gold miners rallied as risk appetite improved.

Investors will be watching lithium prices and Chinese battery demand for signs of a recovery, as well as Liontown's progress on its expansion plans and costs.

This article is for informational purposes only and does not constitute investment advice.