Western Australia will offer A$150m support for the lithium industry

Published: Nov 30, 2024 01:20

Source: SMM

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The Western Australian (WA) government announced an A$150 million rescue package to sustain the state’s lithium sector.

The Lithium Industry Support Program, unveiled by Premier Roger Cook, includes an A$50 million interest-free loan facility for miners. Companies must repay loans starting after the interest-free period, either when lithium spodumene prices exceed US$1,100 per tonne for two consecutive quarters or by June 2026.

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 2 years, to a total value of A$90 million. To support lithium miners in the ramp-up phase of their project, such as Liontown Resources and Covalent Lithium, port charges and mining tenement fees will be waived for up to 24 months, to the value of A$9.37 million.

Lithium prices have fallen below $800 in 2024—below the breakeven point for most Australian producers. This has led to mine closures, including Mineral Resources’ Bald Hill mine, which resulted in 300 job losses. Other miners, including Liontown Resources and Pilbara Minerals, have reduced or paused operations.

The government said WA’s lithium sector supplies nearly 50% of the world’s lithium and generated A$8.4 billion in sales and A$710 million in royalties last financial year. Premier Cook emphasized the temporary nature of the support rather than a "bailout" measure, highlighting its role in ensuring the industry remains globally competitive while protecting more than 11,000 WA jobs.

Import/Export New Energy Lithium Prices Battery Industry Lithium Resources

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