Western Australia Launches Lithium Industry Support Program

The Government of Western Australia is looking to support lithium miners and downstream processing facilities through the Lithium Industry Support program.

Lithium prices saw an unexpected dip this year, which, according to the government, led to multiple mine and processing plant suspensions, impacting jobs in the sector.

The lithium support package from Premier Roger Cook's government offers up to AU$150 million “to protect local jobs and ensure WA remains a battery metals powerhouse.”

In a November 27 media release, the government said support will run for up to 24 months, at which time lithium prices “are expected to recover to an economically sustainable level.”

During this time, government fees will be temporarily waived to support the continuation of downstream processing of lithium for up to two years, amounting to AU$90 million.

For lithium mining companies in the ramp-up phase of production, port charges and mining tenement fees, with a total value of AU$9.37 million, will be waived for up to 24 months.

Additionally, lithium miners can also seek financial assistance through a AU$50 million loan facility, allowing miners to sustain their operations.

The loans will have an interest-free period, which will cease either after average lithium spodumene prices have exceeded US$1,100 per tonne for two successive quarters, or by June 30, 2026, at the latest. Companies must then repay the loans over the next two years.

“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,” Premier Cook said.

Western Australia is home to nearly all of the lithium mines in Australia, which is the world's largest lithium-producing country. The industry is a significant employer in Western Australia, supporting 11,000 jobs in the 2023/2024 financial year.

"That's why our Government is stepping in to provide this support, so they can continue supporting local jobs, our economy and decarbonisation efforts long into the future,” Deputy Premier Rita Saffioti added.

The program is part of the government’s WA Battery and Critical Minerals Strategy and other initiatives supporting critical minerals industry jobs such as the Strategic Industries Fund investment.

"Lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050,” Mines and Petroleum Minister David Michael said.

“We're providing (our lithium miners) 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."

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.