In a bold show of confidence in the face of a softening global lithium market, Mineral Resources (MinRes) and Ganfeng Lithium have each committed $150 million towards their joint venture at the Mt Marion lithium project in Western Australia’s Goldfields region. The move, totalling $300 million, comes at a time when lithium prices are under pressure due to excess supply and market recalibrations across major electric vehicle (EV) economies.
The injection of capital will be used to enhance mining operations, upgrade processing infrastructure, and support long-term mine development strategies—a sign that both companies are focused on sustaining production through volatile cycles.
The Mt Marion site is undergoing significant development with fresh capital inflows.
Source: [Mineral Resources]
A Vote of Confidence Amid Lithium Headwinds
This Mt Marion lithium investment stands out in 2025 as one of the largest capital expenditure announcements in the Australian lithium sector, especially given the current market climate. Benchmark lithium indices have shown a downward trend over the last two quarters, driven by oversupply in China, reduced speculative demand, and EV manufacturers tightening procurement schedules.
Despite these challenges, MinRes Managing Director Chris Ellison reaffirmed the company’s long-term belief in lithium’s future.
“Commodity markets move in cycles,” Ellison stated. “Our job is to build through the downturn, optimise production, and prepare for the inevitable upswing. This investment reflects that discipline.”
What the Funding Will Deliver
The $300 million funding package will focus on several core objectives designed to future-proof the Mt Marion lithium operation:
- Processing Plant Upgrades: Enhancements to concentrator circuits to boost lithium recovery and reduce impurities.
- Mining Fleet Expansion: New equipment will allow increased extraction and reduce cycle times across multiple open pits.
- Tailings and Water Management: Investments in sustainability infrastructure, including improved tailings storage and water recycling systems.
- Power and Logistics: Upgrades to site power reliability and logistics networks, including access roads and freight systems.
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New processing infrastructure to increase lithium recovery rates at Mt Marion.
Source: [Mineral Resources]
Partnership Still Going Strong
The MinRes-Ganfeng Lithium partnership has been one of the most stable joint ventures in Australia’s critical minerals sector. Their Mt Marion JV, first formed in 2015, has undergone multiple development phases and weathered market highs and lows.
Ganfeng, one of China’s largest lithium producers, said the $150 million contribution was a “strategic commitment” to the Australian project, ensuring continuity of supply for its downstream battery manufacturing partners.
“Securing stable, high-quality supply from trusted jurisdictions is key to our business model,” said Ganfeng spokesperson Li Wei.
WA Goldfields: Still the Lithium Powerhouse
Located near Kalgoorlie, the Mt Marion project sits within the prolific Goldfields lithium corridor, home to several other notable operations including Bald Hill, Pioneer Dome, and Mt Holland. The region continues to attract exploration and development interest despite price fluctuations, largely due to its superior logistics, skilled workforce, and regulatory support.
With the Mt Marion lithium investment, MinRes is doubling down on its position as a vertically integrated lithium player, supplying both spodumene concentrate and downstream conversion services via its Kemerton and Wodgina operations.
What Does It Mean for the Market?
Analysts say the announcement could stabilise investor sentiment in the lithium space. Several Australian lithium stocks have experienced double-digit losses since Q4 2024, with smaller developers delaying capex or shelving expansion plans. In contrast, MinRes and Ganfeng are demonstrating that tier-one assets will continue to receive support even in a cyclical downturn.
“Mt Marion is a Tier 1 lithium resource,” said analyst Mira Dalton from Perth-based consultancy Elemental Intelligence. “Backed by two strong balance sheets, it sends a message that quality assets will ride out pricing noise.”
Mt Marion continues to be a critical cog in WA’s lithium supply chain.
Source: [Mineral Resources]
Future Outlook and Expansion
MinRes and Ganfeng have signalled the potential for further downstream investments linked to Mt Marion. While no specific details have been released, options on the table include:
- New lithium hydroxide processing infrastructure
- Enhanced logistics hubs near Esperance Port
- Collaborative offtake deals with OEMs in Korea, Japan, and the EU
The companies also confirmed ongoing exploration drilling in surrounding tenements to increase resource certainty and extend mine life well beyond the current 2030 horizon.
Conclusion
The Mt Marion lithium investment by MinRes and Ganfeng is a decisive move that underlines confidence in the long-term viability of Australia’s lithium sector. While prices may ebb and flow, strategic projects with scale, infrastructure, and downstream linkages are likely to remain attractive—both to miners and to the global clean energy supply chain.
With $300 million on the table and development already underway, Mt Marion is well-positioned to weather the storm—and help lead the next surge in lithium supply.
