Aussie lithium miners square up to China’s battery might | The Business | ABC NEWS

Some Australian lithium miners are trying to bring an extra step in the booming battery supply chain onshore. But they face immense competition from China and expensive operating conditions in Australia. While a host of state and federal support measures are on the table, experts say there must be more to help the fledgling sector thrive.

Australia holds some of the world’s largest lithium reserves, and the people that live here are rapidly adopting lithium-ion batteries in their homes and cars, like BYD EVs.

For most of their recent history, Australian lithium miners dug up a mineral form of lithium called spodumene and shipped it overseas, mostly to China, for processing into battery chemicals such lithium hydroxide.

Recently, a small number of WA lithium miners have started to perform another step of processing in Australia, turning their spodumene into a finished battery-grade chemical. But commercial results have been mixed.

Covalent, a joint venture between Wesfarmers and Chilean miner Sociedad Química y Minera or SQM, is expected to produce 50,000 tonnes of lithium hydroxide a year at its Kwinana refinery. Wesfarmers has an offtake deal to sell part of the production to LG energy Solution and has negotiated a financial buffer.

U-S lithium giant Albemarle’s Kemerton refinery was expected to produce 100,000 tonnes of lithium hydroxide a year from the massive Greenbushes mine but it is now in care and maintenance.

The owners of the TLEA lithium refinery in Kwinana, Tianqi Lithium Energy Australia and IGO don’t see eye to eye on its future. IGO has written down the value of its stake to zero, saying the economics of the plant don’t add up.

These lithium refineries are supported by goals set out in the WA government’s Battery and Critical Minerals Strategy, as well as other state support measures and several federal government strategic initatives – including the National Battery Strategy and the Future Made in Australia program.

PLS chief executive Dale Henderson says Australia can help to build multiple supply chains to support the increase in lithium demand. He joined The Business on the sidelines of the Diggers and Dealers Mining Forum in Kalgoorlie.

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