Western Australia’s government will invest $150 million to sustain the state’s lithium industry during a major slump in prices.
The state will create a $50 million loan facility for mining operations, and waive downstream processing and some mining tenement fees for up to 24 months.
“As we move to achieve a goal of net zero by 2050, our lithium miners will play such an important part in that,” said Western Australia Mining Minister David Michael.
“We know, though, that they are currently experiencing challenging conditions with world pricing, but they will have that critical role to play into the future. It’s important they are given every chance to remain globally competitive during this challenging period,” he said.
Mining companies will be required to repay any loans until average lithium spodumene prices are above US$1,100 per tonne for two consecutive quarters, or by June 2026.
Lithium prices are now around US$800 per tonne, down from a high of $8000 two years ago.
Lithium mining brought in $710 million for the Western Australian government in the 2023-2024 financial year, and generated $8.4 billion in sales.
The lithium industry supports over 11,000 jobs in the state.
Western Australia supplies around 50% of the world’s lithium, according to the state’s government.