The Western Australian government has allocated AU$30 million to expand its fee waiver initiative, providing a lifeline to the state’s downstream lithium processing sector as it navigates a period of extreme price volatility and rising overheads.
The funding extends the Lithium Industry Support Program, originally launched in late 2024, through to December 31, 2027.
The move is specifically designed to support two of the state’s heavyweights in value-add processing: Tianqi Lithium Energy Australia and Covalent Lithium.
The initiative offers a reprieve from various government fees and charges for the two producers, who are essential to the global EV battery supply chain.
By supporting these facilities, the government aims to bridge the gap until the federal government’s Critical Minerals Production Tax Incentive, which offers a 10 per cent rebate on processing costs, commences in mid-2027.
Mines and Petroleum Minister David Michael said the support was a strategic necessity to protect local jobs and maintain WA’s position as a global leader in critical minerals.
“Tianqi Lithium Energy Australia and Covalent Lithium have a vitally important role to play in critical minerals processing in WA and are a key component of the EV battery supply chain,” the minister said.
“The government believes it is crucial to support these two strategically important businesses while they battle with volatile commodity prices amid a period of rising costs; that’s why we decided to extend the crucial fee waiver initiative.”
In a further bid to lower industry costs, the government has also committed AU$5 million to develop standards for the reuse of lithium by-products.
Currently, disposing of processing waste is a significant expense; this funding will facilitate the use of these materials in the construction sector, potentially turning a waste stream into a secondary revenue source.
The lithium package follows a recent AU$15 million allocation for interest-free loans to the state’s nickel miners, further highlighting the government’s “Made in WA” campaign.
By intervening in the critical minerals sector, the state is seeking to insulate high-tech processing jobs from the cyclical nature of global commodity markets while fostering a more resilient, diversified economy.
