Core Lithium has restarted mining at its Finniss Lithium Project in the Northern Territory, following a period of care and maintenance. The company’s decision comes as lithium prices have rebounded to above US$4,000 per tonne. The project is located about 90 kilometers south of Darwin.
Finniss was placed on care and maintenance in 2024 after lithium prices fell sharply. Core Lithium said the improved market environment and reduced costs have strengthened the project’s ability to operate competitively through commodity cycles.
Spodumene price recovery supports restart decision
The restart follows an increase in the price of spodumene concentrate, described by the company as the primary lithium-bearing mineral mined in Australia. Spodumene prices reached record highs during the lithium boom of 2022 before dropping to about US$1,460 per tonne in 2024. Core Lithium said prices have since recovered to around US$4,200 per tonne.
Paul Brown, Managing Director of Core Lithium, said the restart is not based solely on higher commodity prices. The company has also focused on lowering operating costs and improving efficiency to support resilience across market conditions. Core Lithium said it is targeting current market strength while benefiting from a significantly improved cost structure compared with earlier operations.
Open-pit activities resume for about 12 months
The restart began with resumption of blasting and excavation at the Finniss open-pit operation. Core Lithium expects the open pit to remain active for approximately 12 months. The company said this stage provides a bridge toward future underground mining development.
At full production capacity, the open-pit operation is expected to support up to 300 jobs. Core Lithium linked the reopening to broader supply contributions for Australia’s lithium industry supporting electric vehicles, energy storage and battery technology.
Funding package includes equity raising and cash reserves
Core Lithium said it has secured funding to return Finniss to production. The financing mix includes an initial package valued at A$170 million, a planned A$120 million equity raising, and approximately A$41 million in cash reserves.
The company also cited revenue generated from selling previously stockpiled lithium material mined before the 2024 shutdown. Core Lithium said the funding approach provides flexibility for restarting operations while continuing investment in future expansion plans.
Underground development contract awarded for next phase
Alongside open-pit production, Core Lithium is advancing plans for underground mining at Finniss. The company awarded a A$274 million contract to mining contractor Develop Global. The underground project is expected to extend operational life and unlock additional lithium resources.
Core Lithium said the underground work is intended to strengthen long-term economics by combining near-term production with future expansion. The company also described this pathway as part of positioning Finniss for longer-term contribution to Australia’s battery minerals industry.
Northern Territory wet-season damage affects logistics route
Operational challenges remain despite improved market conditions. Core Lithium said extensive rainfall during the most recent wet season caused significant damage to critical transport infrastructure across the Northern Territory.
The company highlighted Cox Peninsula Road as a key logistical route for moving lithium concentrate to the Port of Darwin for export. Core Lithium stated that cooperation between industry stakeholders and government authorities will be required to complete repairs efficiently and limit transportation disruptions.
Lithium demand backdrop tied to electrification and storage growth
The Finniss restart aligns with ongoing demand drivers cited by Core Lithium across electric vehicles, large-scale battery storage systems and renewable energy technologies. The company said governments and manufacturers are investing in electrification strategies that increase requirements for battery minerals supply.
Lithium market cycles remain a factor, according to Core Lithium’s description of current producer focus areas. The company said producers are prioritizing operational efficiency, lower production costs and disciplined capital management rather than relying only on commodity price strength.
Finniss resumes production with jobs returning and expansion underway
The reopening of the Finniss Lithium Project marks a restart milestone for both Core Lithium and Australia’s critical minerals sector. Core Lithium linked its position again contributing to global battery supply chains with stronger lithium prices, improved operating efficiencies and progress toward underground expansion.
The company said production is underway with hundreds of jobs returning while long-term development plans continue. Core Lithium described this as beginning a new phase for Finniss within one of the world’s strategically important mineral markets.
