The Western Australian government has announced a substantial support package aimed at bolstering the state’s critical lithium industry, which plays a vital role in the global battery minerals market.
This initiative is designed to protect thousands of local jobs and reinforce WA’s ambition to become a leading hub for battery minerals processing.
Western Australia’s lithium sector has seen explosive growth in recent years, establishing itself as the largest hard rock lithium producer globally, supplying approximately 50 per cent of the world’s lithium.
In the financial year 2023-24, lithium miners generated $8.4 billion in sales and contributed $710 million in state royalties.
The industry also supported over 11,000 jobs within the state.
Despite this success, the industry is currently grappling with a significant downturn due to an unexpected drop in lithium prices this year.
This decline has led to suspensions at several mines and processing plants, raising concerns about job security and operational viability.
In response to these challenges, the state government has introduced the Lithium Industry Support Program, which includes a comprehensive support package valued at up to $150 million.
Key components of this program include:
- Waiving of government fees: For a period of up to 24 months, government trading enterprises will waive fees related to downstream processing, amounting to $90 million. Additionally, port charges and mining tenement fees will be waived for lithium miners in the ramp-up phase of production, totalling $9.37 million.
- Interest-free loan facility: A $50 million loan facility will be available to assist miners with temporary interest-free loans. These loans will be contingent on demonstrating current financial stability and operational plans. Repayment will occur through quarterly payments over two years after the interest-free period ends, which will cease either when lithium prices exceed US$1,100 per tonne for two consecutive quarters or by June 30, 2026, whichever comes first.
Premier Roger Cook highlighted the importance of WA’s lithium industry for both local employment and global energy transition efforts.
“Lithium will continue to be an incredibly important element moving forward,” he stated, highlighting its role in economic diversification and job support during challenging market conditions.
Deputy Premier Rita Saffioti reiterated that assisting the lithium sector is crucial for both local economies and global decarbonisation efforts.
“We’re very aware of the challenges the lithium industry is facing at the moment,” she noted.
Mines and Petroleum Minister David Michael underscored that this support package reflects the government’s commitment to economic diversification and sustaining critical minerals jobs.
He stated that “lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050”.
The state government’s proactive measures aim not only to stabilise Western Australia’s lithium industry during this turbulent period but also to position it for future growth as a leader in battery minerals processing.
As the global demand for lithium continues to rise, these initiatives are expected to play a crucial role in maintaining WA’s competitive edge in this vital sector.
