- Up to $150 million Cook Government lithium support package to protect local jobs and ensure WA remains a battery metals powerhouse
- Lithium Industry Support Program to temporarily waive government fees for downstream processing
- Port charges and mining tenement fees waived for up to 24 months for lithium miners during ramp-up phase of projects
- Loan facility to help under-pressure lithium miners access temporary loans to sustain their operations
The Cook Government is acting to provide assistance to Western Australia's 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 per cent of the world's lithium.
In the 2023-24 financial year, lithium miners generated $8.4 billion in sales and delivered $710 million in State royalties to help pay for the operation of hospitals and schools, and build and maintain the State's road networks. During the same period, the industry supported more than 11,000 Western Australian jobs.
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 and impacted jobs.
In response, the State 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 2 years, to a total value of $90 million.
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 $9.37 million.
A $50 million 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.
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 US$1,100 per tonne for two successive quarters, or by
30 June 2026 if not stopped before then.
The Lithium Industry Support Program builds on the Cook Government's WA Battery and Critical Minerals Strategy and existing initiatives supporting critical minerals industry jobs, including the Strategic Industries Fund investment, helping to deliver common-user and other enabling infrastructure at strategic industrial areas (SIAs).
As stated by Premier Roger Cook:
"WA'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.
"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."
As stated by Deputy Premier Rita Saffioti:
"Our lithium industry plays a huge role in our State's economy, providing jobs for thousands of Western Australians.
"Lithium forms an incredibly important part of not only decarbonising our own economy, but supporting the entire global decarbonisation effort.
"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.
"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."
As stated by Mines and Petroleum Minister David Michael:
"This support package highlights the Cook Government's commitment to our 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.
"Lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050.
"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."
