Albemarle’s plans to expand its Western Australian lithium hydroxide plant will make it the biggest and most advanced lithium hydroxide plant in the world outside of China.
The company announced that it will grow its plant in Kemerton, which converts spodumene from the Greenbushes mine to battery-grade lithium, from two processing trains to four, giving the plant an increased capacity of 100,000mt per annum.
The high-quality, high value lithium products produced at the plant are in demand from some of the world’s top manufacturers of electric vehicles, and electronic and energy storage products.
The capital expenditure for trains three and four is estimated to be more than USD$1 billion, building on the capital expenditure for trains one and two, which was also more than USD$1 billion.
Construction will begin in May 2023 and is expected to support a workforce of about 1,000 at its peak, with the first product from the expansion expected in 2026.
The plant’s first two processing trains have an operational workforce of 480 people, 90 per cent of whom live in the region. Once complete, trains three and four are expected to increase the total operational workforce to 850.
To accommodate the expected workforce, Albemarle is developing a high-quality, sustainable workforce accommodation precinct near Australind, at a cost of more than $140 million. Over time, the precinct will transition to a permanent residential estate.
Western Australian Premier, Mark McGowan, said, “Albemarle’s lithium hydroxide plant in Kemerton is one of the best examples of what Western Australia has to offer the world when it comes to battery and critical mineral supply chains.
“The expansion of the plant is great news for the region, the state and Australia.
“For years to come, Albemarle’s lithium hydroxide plant will support local jobs, grow advanced manufacturing in the South-West and deliver economic benefits for the whole state.”
Western Australian State Development, Jobs and Trade Minister, Roger Cook, welcomed Albemarle’s decision to expand and the company’s continued investment in advanced mineral processing in Western Australia.
“As demand for batteries and critical minerals continues to increase, so do supply chain opportunities for Western Australia,” Mr Cook said.
“The Western Australian Government is committed to making sure the state capitalises on its status as the powerhouse of the nation’s battery and critical minerals sector and continues to grow its multi-billion dollar processing industry.”
Western Australian Mines and Petroleum Minister, Bill Johnston, said, “Albemarle has been a lead player in the multi-billion dollar battery and critical minerals processing industry that Western Australia has successfully established in less than a decade.
“We look forward to seeing Albemarle and the downstream processing industry continue to expand in Western Australia.
“Guided by our Future Battery and Critical Minerals Industries Strategy, the Western Australia Government is supporting the creation of mineral processing jobs and the development of new skills across the state.”
Through the implementation of its Future Battery and Critical Minerals Industries Strategy, the Western Australian Government is capitalising on the state’s natural competitive advantages and growing Western Australia’s participation in the global battery and critical mineral supply chains.
The Federal Government has also welcomed Albemarle’s investment in Western Australia’s critical minerals processing capacity.
Federal Minister for Resources and Northern Australia, Madeleine King, said the investment signifies Australia’s growing importance in the international critical minerals industry and underlines Western Australia’s role in global efforts to reach net zero.
“With its wealth of resources, positive investment settings and highly skilled workforce, Australia is well placed to become a renewable energy superpower,” Ms King said.
“Global demand for resources like critical minerals needed for electric vehicles and battery technologies is increasing as the world moves to decarbonise, and Australia has remarkable potential to meet this demand.”
