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Highlights

  • IGO revises down its 2025 capital expenditure for Greenbushes lithium mine by up to AU$250 million.

  • Lithium production at Greenbushes fell 13% in Q3 amid continued price pressures.

  • Company posts AU$34 million Q3 EBITDA, reversing previous quarter's loss.

Australian miner IGO Ltd (ASX: IGO) announced a reduction in its capital expenditure outlook for the 2025 fiscal year at the Greenbushes lithium project in Western Australia, as the company recalibrates its investment strategy in response to shifting market dynamics.

The company now expects to allocate between AU$700 million and AU$800 million for the Greenbushes mine, compared to its earlier forecast of AU$850 million to AU$950 million. This adjustment follows a recent assessment and streamlining of its project capital portfolio, the company said in a statement on Wednesday.

Greenbushes, jointly owned by IGO, China's Tianqi Lithium (SZ: 002466), and U.S.-based Albemarle Corp (NYSE: ALB), is one of the most significant lithium operations globally. However, like many lithium ventures, it has not been immune to the challenges stemming from a protracted slump in lithium prices.

In the third quarter, Greenbushes produced 341,000 metric tons of spodumene concentrate — a 13% decrease compared to the previous quarter. The dip in output reflects broader market conditions that have seen prices for spodumene, lithium carbonate, and lithium hydroxide decline by as much as 70% over the last fiscal year.

The lithium industry has been navigating a period of significant price erosion, triggered by oversupply and slower-than-expected demand growth from the electric vehicle sector. While some operations have chosen to scale back or postpone expansions, others have continued production with backing from major stakeholders, particularly Chinese battery manufacturers.

Earlier this year, IGO and Tianqi decided to halt all development activities at their Kwinana lithium hydroxide facility, another blow to the miner's diversification efforts. That move came in the wake of substantial writedowns on IGO's nickel assets, leading the company to initiate a broader strategic review amid falling global nickel prices and growing supply.

Despite the challenging environment, IGO managed to turn its financial performance around in the third quarter, reporting an underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of AU$34 million. This marks a significant improvement from the previous quarter’s EBITDA loss of AU$79 million.

Still, investor sentiment appeared cautious. Shares of IGO dipped nearly 1.9% in early trading, while the broader Australian mining index (.AXMM) edged 0.4% lower.