WA Government to protect lithium jobs
The WA Government is acting to provide assistance to its critical lithium industry, supporting thousands of local jobs and the State’s push to become a global battery minerals processing hub.
WA’s lithium industry has grown rapidly in recent years to be the biggest hard rock industry of its type in the world, supplying approximately 50% of the world’s lithium.
However, the industry has experienced a sudden and unexpected plunge in the price of lithium this year, which has prompted some mine and processing plant suspensions, impacting jobs.
In response, the WA Government will provide support to lithium miners in the ramp-up phase of production and downstream processing facilities for a period of up to 24 months, after which lithium prices are expected to recover to an economically sustainable level.
Through the Lithium Industry Support Program, Government Trading Enterprises (GTEs) including DevelopmentWA, Synergy and Water Corporation will temporarily waive government fees to support the continuation of downstream processing of lithium, for up to two years, to a total value of $90m.
WA Premier Roger Cook says the State’s lithium industry supported more than 11,000 local jobs last financial year and has three new lithium hydroxide refineries currently in construction or commissioning.
“Lithium will continue to be an incredibly important element moving forward —particularly for the global energy transition,” he said.
“It is also at the centre of WA’s economic diversification story, as we work to position our State as a global leader in downstream processing.
“This package will provide important temporary and responsible support for WA’s fledgling lithium industry, taking into account the extremely challenging market conditions it is facing.
“This package is aimed at helping our critical lithium industry and its workforce to the other side of this turbulent period — supporting local jobs and doing what’s right for WA.”
WA Deputy Premier Rita Saffioti comments on the program.
“We’re very aware of the challenges the lithium industry is facing at the moment, and it’s in every Western Australians’ interest the industry gets the assistance it needs,” she said.
“That’s why [the WA] Government is stepping in to provide this support, so they can continue supporting local jobs, our economy and decarbonisation efforts long into the future.”
To support lithium miners in the ramp-up phase of their project, port charges and mining tenement fees will be waived for up to 24 months, to the value of $9.37m.
A $50m loan facility will also be available to help lithium miners access temporary interest-free loans to help sustain their operations, based on demonstrating their current financial position and operational plan.
WA Mines and Petroleum Minister David Michael says this support package highlights the WA Government’s commitment to its economic diversification strategy and downstream processing capabilities.
“It will also help protect the jobs of thousands of Western Australians, working in skills areas that will be crucial to the State’s future as a critical minerals powerhouse,” he said.
“Our lithium miners are experiencing very challenging conditions currently, but we know they will play a crucial role in the future energy transition.
“We’re providing them with temporary and responsible support now to give them the best chance of continuing to supply the world with lithium products today and well into the future.”
Companies will be required to repay the loans through regular quarterly payments over the two years following the end of the interest-free period, which will cease after average lithium spodumene prices have exceeded $1700 (US$1,100/t) for two successive quarters, or by June 30, 2026.