By Echha Jain

March 15 (Reuters) - Australian lithium miner Liontown

Resources ( LINRF ) posted a bigger half-year loss on Friday,

hurt by higher costs as it nears first production at its

flagship Kathleen Valley project, and an increase in investing

activities.

The company said the project is on track to start production

in mid-2024 and on budget at A$951 million ($624.1 million). In

January, the company flagged it may delay the planned ramp-up of

the project as lithium prices declined.

The battery metal's prices have fallen around 70% over the

past year due to smaller-than-expected demand from companies

that make batteries for electric vehicles. Prices, though, have

steadied in recent weeks.

Liontown's net loss after tax widened to A$31 million in the

six months ending Dec. 31, from A$6.9 million a year earlier.

Last month, its peer Pilbara Minerals ( PILBF ) also reported

a plunge in first-half profit and reduced its capital

expenditure forecast due to the lacklustre prices.

Liontown, the target of a failed takeover bid by Albemarle

in October, had refinanced its debt facility for $363

million to support the Kathleen Valley project's ramp-up earlier

this week.

The company's shares were down 7.3% at A$1.265 as of 0422

GMT, extending their losses since opening 3.7% lower.

"It's a stock I am happy to just observe at this stage and

not invest in," Brad Smoling, managing director at Smoling

Stockbroking said.

($1 = A$1.5235)