Western Australia: A Global Battery and Critical Minerals Hub
Western Australia: A Global Battery and Critical Minerals Hub
A Global Battery
and Critical Minerals Hub
JUNE 2022
Minister’s foreword
Western Australia is primed to play a
central role in decarbonising the world’s
economies; as a reliable, ethical and cost-
effective supplier of battery and critical
minerals and clean energy products.
With a rich endowment of battery and
critical minerals, including some of the
most significant mineral deposits in the
world, the state has established itself as a
leading supplier of lithium, nickel, cobalt,
manganese and rare earths to a host of » Mining giant, BHP Nickel West
international partners. These minerals commenced operations at its battery-
are essential to a range of clean energy grade nickel sulphate plant in Kwinana,
technologies, such as rechargeable batteries, Western Australia, in 2021.
electric vehicles and wind turbines. » Major investments by Lynas Rare Earths and
Since the middle of the last decade, Iluka Resources are set to establish our state
Western Australia has welcomed over $9 as one of the few jurisdictions in the world to
billion of investment across the sector, offer processed rare earths outside of China.
including the establishment of globally-
These projects are a testament to the
significant mineral processing facilities.
innovative and technical capability present
» Three of the world’s largest lithium in our state and provide a strong foundation
producers—Tianqi Lithium (China), for further industry development.
Albemarle (United States) and SQM (Chile)—
Western Australia’s Future Battery and Critical
have partnered with Australian companies
Minerals Industries Strategy, launched in
IGO, Mineral Resources and Wesfarmers
2019, outlines the WA Government’s vision
to build and operate battery-grade lithium
to grow the state’s participation in global
hydroxide facilities in Western Australia,
battery and critical mineral supply chains,
with Tianqi commencing commercial
with the primary goal of increasing domestic
production at its Kwinana plant in 2022.
value-add manufacturing. To bring this to
fruition, the WA Government is seeking to
attract new investment and establish strategic
Acknowledgement of Country partnerships with key international partners.
$361.8bn 63%
Western Australia’s Exports accounted for 63%
gross state product (GSP) of Western Australia’s GSP
in 2020-21
2.6% 47%
Western Australia’s rise in Mining accounted for 47%
real GSP in 2021-21 ($169.6 billion) of Western
Australia’s GSP in 2020-21
Manufacturing
Made the largest contribution
to Western Australia’s real
GSP growth, as industry $136.4 billion
increased production of of major resources projects are in
minerals and chemical the pipeline (as at March 2022)
products and machinery and
transport equipment.
Naturally beautiful
and liveable
With a temperate climate and a wealth of
natural, cultural and tourism destinations to
enjoy, Western Australia offers one of the
best lifestyles globally. Its capital city, Perth, is
consistently ranked as one of the most liveable
cities in the world. Home to a culturally diverse
population, the nation’s most affordable
housing market and world-class health care,
education and infrastructure, there’s no
better time to be welcomed to the state.
London
Seoul
Tokyo
Shanghai
Kobe
Dubai Mumbai
Hanoi
Singapore
Jakarta
Perth
TIME ZONE
Flanagan Bore
Newman
Yangibana
Butcherbird
Carnarvon
Wingellina
West Musgrave
Meekatharra Wiluna Fisher East
Gabanintha
Australian Vanadium Mt Keith
Barrambie Kathleen Valley
Duketon
Odysseus Leinster
Mt Magnet
Windimurra
Laverton
Youanmi NiWest
Geraldton Leonora Mt Weld
Murrin Murrin
Goongarrie
Goongarrie
Black Swan
Cadoux Kalgoorlie–Boulder
Coolgardie
Southern Cross
Mt Marion Bald Hill
Silver Knight
Perth Cassini
Meckering
Mt Thirsty
Nova Eucla
Fremantle Mt Holland Norseman
Forrestania Medcalf
Bunbury Ravensthorpe
Mt Cattlin Munglinup
Greenbushes Springdale Esperance
Albany
Western Australia’s
key midstream investments
Operating/commited
Planned – with government
funding in place
Rare earths
Hastings Technology Metals
Lithium
Production capacity:
Tianqi Lithium Australia 3,400 tpa NdPr^
Production capacity: Capex: $650 million
48,000 tpa of lithium hydroxide
Capex: $700 million
Lithium
Covalent Lithium
Vanadium
Production capacity:
45,000 tpa of lithium hydroxide Australian Vanadium
Capex: $1.9 billion* Production capacity:
11,200 tpa of vanadium Rare earths
Capex: $600 million
Nickel Lynas Rare Earths
Production capacity:
BHP Nickel West 10,500 tpa NdPr ^
Production capacity: Capex: $500 million^^
100,000 tpa of nickel sulphate Rare earths
Capex: $60 million Iluka Resources
Production capacity: P-CAM
17,500 tpa of rare earth oxides Pure Battery Technologies
Graphite Capex: $1.2 billion Production capacity:
Ecograf 50,000 tpa precursor cathode
Production capacity: active material (P-CAM)
20,000 tpa of spherical graphite Capex: $460 million
Lithium
Capex: $100 million
Albemarle Lithium
Production capacity:
50,000 tpa of lithium hydroxide**
tpa = tonnes per annum Capex: $1 billion
*inclusive of mine and concentrator
** 100,000 tpa once fully operational
^ Neodymium and Praseodymium, produced as a rare earth carbonate
^^ Figure inclusive of Malaysian plant upgrades
Production capacity and capex figures are provided as estimates only. Actual production and costs may vary
Geraldton feeder
Existing 33kv rural feeder
line from Geraldton
Solar energy
Solar energy collected
from residential PV’s
Jessica Farrell
Asset President, BHP Nickel West
BHP is pivoting towards ‘future-facing
commodities’ - those commodities such
as nickel and copper that are essential
as the world decarbonises. Our Nickel
West operations in Western Australia
are a big part of this transition.
One of the mega-trends expected to
shape our long run operating environment
is the electrification of transport. Every
electric car battery requires 40kg of
nickel and BHP now sells 90% of our nickel sulphate per year when fully operational
nickel to the global battery market. We – enough to make 700,000 electric vehicle
expect demand for nickel in batteries will batteries each year. Our investment to produce
increase by 500% in the next decade. high purity nickel sulphate, along with nickel
powder and briquettes, enhances Western
BHP’s nickel sulphate plant is an Australian- Australia’s position as a supplier of choice for
first, and is located south of Perth in Western the growing global electric battery market.
Australia. It will produce over 100,000 tonnes of
We believe Western Australia is uniquely
placed to support the world’s transition to
electric cars because of our highly regarded
BHP’s nickel sulphate plant
ethical and sustainable footprint. Our key
markets are increasing their demand for
clean nickel products and a clean supply
chain and there is an increasingly vocal call
by our customers to ensure that vehicle
supply chains are addressing important
social issues such as carbon footprint,
water stewardship and social value.
Companies are being recognised for their
efforts to address these issues, and Western
Australia is also blessed with a stable,
reliable geopolitical environment, making
long term contracts and investments safe
for downstream supply chain customers.
The state of Western Australia has been
supportive of developing a battery materials
industry through various partnerships and
project funding, including support for the
Future Battery Industries CRC which BHP
Nickel West is a founding member of.
Tom O’leary
Managing Director & CEO, Iluka Resources
Since Iluka’s antecedents began operations in
Western Australia in the 1950s, we have evolved
to become an international critical minerals
company, with WA serving as the mineral
processing hub of our Australian operations.
In April 2022, Iluka announced the development
of Australia’s first fully integrated rare earths
refinery at Eneabba in WA’s Mid West.
This will be a multi-generational asset for
the downstream processing of Australia’s Beyond the production of rare earth
rare earth resources, putting Iluka at oxides, the refinery also provides a
the forefront of the global transition to foundation for undertaking potential
an electrified, low carbon economy. further steps along the value chain in
Rare earths are among the key building blocks future, such as rare earth metallisation.
of this transition; and the Eneabba refinery will Iluka has been undertaking value additive
produce the downstream mineral products mineral processing in WA since the 1970s.
that are critical inputs across a range of There are of course risks associated with
industries and technologies including electric downstream processing and we have sought
vehicles, sustainable energy, advanced to de-risk the Eneabba refinery project as
electronics, medical and defence applications. much as possible. This includes our partnership
with the Australian Government, which is
providing a $1.25 billion non-recourse loan
to construct and commission the refinery.
From a technical perspective, we have
engaged Carester, the world’s preeminent
source of rare earths refining expertise, as
a member of our project owners’ team.
The quality of the business outcomes we have
achieved in WA reflects the strength of our
relationships with a range of stakeholders.
This includes the WA Government, with
whom we have longstanding links by
virtue of more than 70 years of operations
in the state. In recent times, we have
seen strong support from ministers and
senior officials for our diversification into
downstream rare earths processing.
We are very grateful for this support and it
reinforces our central focus on delivering
the Eneabba refinery for our shareholders
and stakeholders more broadly.
Wyndham
Derby
Western Australia’s Broome
Browse LNG Precinct
infrastructure
Port Hedland
Boodarie
Dampier
Varanus Island Anketell
Burrup
Ashburton
Maitland
Ashburton North
Oakajee
Geraldton
Esperance
Mirambeena
Albany
Amanda Lacaze
CEO & MD Lynas Rare Earths
Western Australia offers a number of unique
advantages to doing business, including a
significant critical mineral endowment and
an excellent reputation for safety, innovation
and environmental practice. These provide
a strong foundation for the development of
the Australian critical minerals industry as
a leading supplier to global supply chains.
Lynas Rare Earths is the world’s only significant
producer of separated rare earths outside
of China. The materials we produce are associated upgrades at the Lynas Malaysia
essential to the manufacturing of products plant. This is a foundation project for the Lynas
to reduce air pollution and transition to 2025 growth vision and once operational, mixed
a low carbon economy. We are actively rare earths carbonate will be shipped directly
engaged with governments around the from Kalgoorlie to the Lynas plant in Malaysia
world on the development of sustainable for further processing, or to the proposed US
and resilient critical minerals supply chains Rare Earths Separation Facility. The Kalgoorlie
to meet the growing market demand. plant has been designed to facilitate processing
of third-party rare earths concentrate from
Lynas has a well-developed plan to grow with other Australian projects as they come online.
the market including the development of a new
rare earths processing facility in Kalgoorlie, with Successful and competitive downstream
a project cost of around $500 million including processing requires the development of
industry and resource-specific capabilities
and cost-efficient operations. Lynas is
well positioned with significant inhouse
Intellectual Property with respect to rare
earths processing and a strong focus
on safe, cost-efficient operations.
Lynas has received excellent government
support for our operations in the state’s
Goldfields region, including Lead Agency
Status from the WA Government.
The location where we’re building the
new facility had been identified by the WA
Government and the City of Kalgoorlie-
Boulder as a potential site for critical
minerals processing and the Lynas Rare
Earths Processing Facility in Kalgoorlie-
Boulder can be the first step in developing
a critical minerals hub in the region.
Contact us
Please contact the Invest and Trade Western
Australia team at [email protected]
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