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The company has been granted approvals of the mining proposal and mine closure plan.
Major site works will now begin, keeping the project on schedule to achieve first spodumene concentrate production in mid-2024.
Some early works were allowed to proceed due to a small operations permit.
The accommodation village is well underway with 68 rooms of 500 delivered.
The company is preparing to clear the site for the processing plant this week.
Long-lead items have been ordered and two thirds of construction tenders have been issued.
Liontown managing director Tony Ottaviano said work could begin at full pace.
"This is a very exciting time for everyone involved with the company, and shareholders can look forward to steadily increasing news-flow in the weeks and months ahead as we move into the full-scale commercial development phase," he said.
The initial 2.5 million tonne per annum project will produce 500,000 tonnes per annum of 6% spodumene concentrate to be sold to tier one customers, Ford, Tesla and LG Solution.
The company is planning an expansion to 4Mtpa within six years, as well as a potential downstream plant.
Liontown shares last traded 2.1% lower at $1.457, giving the ASX 200 company a market capitalisation of $3.2 billion.
