Liontown Resources has slashed production plans at its Kathleen Valley mine after deferring an expansion to save $100 million in an attempt to survive a prolonged downturn in the lithium price.

The mine, north-east of Perth, only started producing lithium-rich spodumene concentrate in July, but has come online amid a severe slump in global lithium prices, which has forced the closure of mines including Arcadium Lithium’s Mt Cattlin and Core Lithium’s Finniss project.