The decision by Albemarle to downgrade its lithium hydroxide processing operations in Western Australia underlines the continuing volatility of international critical minerals markets.
Our immediate concern is for the workers and the local community impacted by this decision.
The Government notes Albemarle has committed to support workers affected and to work with unions and the local community.
As Albemarle has made clear, this decision is the result of global market conditions.
Importantly, Albemarle has committed to improving production at one processing train at its Kemerton plant and believes there will continue to be lithium hydroxide processing in Kemerton well into the future.
Market concentration and volatility in demand has caused extreme price changes in lithium markets, including an 80 per cent fall in lithium hydroxide prices over the last 12 months.
This is complex problem, and it is impacting international markets across the critical minerals sector globally.
Current conditions in lithium markets highlight the importance of policy support for Australia's critical minerals sector to help address distortions in global markets and secure opportunities for Australia to be a key supplier of high quality refined critical minerals.
The decision underlines the need to provide significant support to our critical minerals sector.
In the May Budget, as part of the Future Made in Australia agenda, the Government delivered a Critical Minerals Production Tax Incentive, valued at $17.6 billion over 14 years, to drive more processing and value-adding of critical minerals onshore in Australia.
Minister for Resources Madeleine King has called for bipartisan support for Australian critical minerals and rare earths industry, including calling on the Opposition to back production tax credits to support local industry and local jobs.
Minister King said production tax credits would help build our sovereign capability, increase local resilience, add additional value to Australian commodities and grow jobs.
