Western Australia has launched a $150 million support package to stabilize its lithium sector, which has been hit hard by falling global lithium prices. The Lithium Industry Support Program, announced by Premier Roger Cook, aims to prevent mine closures and protect over 11,000 jobs in the sector.
Key components of the package include:
- Fee waivers: Government charges on electricity, water, port fees, and mining tenements will be waived for up to 24 months, providing relief to lithium producers facing high operational costs.
- Interest-free loans: A $50 million loan facility will offer interest-free loans to struggling miners. These loans, repayable over two years, will only require repayment once lithium spodumene prices recover to $1,100 per tonne.
The program has been met with cautious optimism within the industry. CEOs of major companies such as Liontown Resources and Pilbara Minerals acknowledged the government’s support but emphasized the need for ongoing market recovery.
Western Australia’s lithium sector, which supplies about 50% of global hard rock lithium, has seen significant price volatility. After peaking at $8,000 per tonne, prices have fallen to under $800 per tonne, leading to mine suspensions and job losses. The new package is seen as a critical step in helping the industry navigate these challenges and continue to play a central role in the state’s economic diversification and decarbonization goals.
