Australia’s Core Lithium has secured approximately $205 million in funding to fully finance the restart of its Finniss lithium project, with the company’s board approving a final investment decision to proceed.
The funding package comprises a $70 million convertible note from Glencore’s Australian unit and InfraVia, a $50 million senior secured debt facility from Nebari, and an equity raising of A$120 million (approximately $85.3 million) before costs. The placement will be priced at A$0.21 per share, representing a 4.5% discount to the company’s previous closing price.
Core Lithium stated that the financing will support construction activities and provide working capital during the ramp-up phase. The company is targeting first production of spodumene concentrate from the Finniss project in the September quarter.
Additional liquidity is expected from a binding agreement signed in February with Glencore International AG for the sale of the project’s remaining spodumene concentrate stockpile at a price of $2023 per tonne. Proceeds from this sale are intended to support the restart and early-stage operations.
The restart decision comes amid early indications of stabilisation in lithium markets following a prolonged period of price declines driven by weaker-than-expected electric vehicle demand and oversupply.
Other producers have also signalled potential production increases. Pilbara Minerals has announced plans to restart output at its Western Australia operation, while Liontown Resources is reviewing a possible expansion of its Kathleen Valley project in anticipation of improved market conditions.
Core Lithium’s decision reflects a broader trend among producers positioning for a potential recovery in lithium demand, particularly in battery and energy storage markets.
