Liontown Resources chairman Tim Goyder says Hancock Prospecting’s surprise swoop on a strategic stake in the $6.6 billion battle for his West Australian lithium hopeful demonstrates the quality of its Kathleen Valley project, despite billionaire Gina Rinehart suggesting the development still poses some risk.

In an apparent consolidation of power in the lithium sector, which is increasingly the domain of WA’s billionaires, Mineral Resources boss Chris Ellison was appointed Delta Lithium’s chairman on Tuesday.

Liontown Resources boss Tim Goyder says the interest is a compliment. Trevor Collens

Delta’s Mt Ida asset and Kathleen Valley, about 160 kilometres to the north, were once described by departing Delta boss David Flanagan as part of the “lithium corridor of power” in WA.

Mrs Rinehart’s Hancock alluded to potential hiccups in bringing Kathleen Valley into production, in a statement from Australia’s richest person on Monday disclosing her increased stake in Liontown.

She now controls 7.72 per cent of the company, and her greater sway – which comes with a pitch for board representation – casts some doubt over the success of Albemarle’s takeover offer pitched at $3 a share. The Liontown board endorsed Albemarle’s improved bid on September 4.

Mr Goyder declined to speculate on how the takeover might play out, after Hancock said it saw potential to weigh in on construction, mining and downstream processing of Kathleen Valley’s ore albeit “having a number of significant risks”.

“It’s a compliment to Liontown, the company and the team, that you have got Albemarle making a bid at $3 and Gina buying stock on market,” Mr Goyder, who is also a WA billionaire, said.

Mrs Rinehart and entities associated with Hancock have forked out