Trade and Tourism Minister Don Farrell and Resources Minister Madeleine King have welcomed moves by Export Finance Australia (EFA) to join in the financing of Liontown’s Kathleen Valley Lithium project, which will see 500,000 tonnes of exportable lithium produced for markets including Korea and the United States.

EFA is providing $220 million to the project through an export credit agency (ECA) Facility, alongside a syndicate of commercial banks and funders.

The ECA Facility will also allow for the potential later participation of export credit agency counterparts, the Export-Import Bank of the United States (EXIM) and the Korea Trade Insurance Corporation (K-Sure) in the project, subject to EXIM and K-Sure eligibility criteria and credit and risk requirements being met.

Minister Farrell said the project will help to diversify global critical mineral supply chains, including through supplying to Korea and the United States.

“It is another example of how more trade and investment means more jobs for Australian workers,” said Farrell.

The lithium project is expected to create around 800 jobs during construction, and around 600 jobs ongoing.

Minister King said the investment was significant for Western Australia and showed how the Government was supporting the growing critical minerals industry.

“The road to net zero runs through Australia’s resources industry. Australian critical minerals projects are vital to ensuring the world has a stable, reliable source of materials to power the energy transition.

“Global demand for critical minerals needed for electric vehicles and battery technologies is increasing as the world moves to decarbonise, and Australia is key to meeting this demand,” said King.

Provision of EFA finance is subject to all financing conditions and regulatory approvals being met.