The Western Australian government has launched a A$150-million support package aimed at safeguarding local jobs and ensuring the state maintains its position as a global leader in battery metals, amid a downturn in the lithium industry.

In recent years, Western Australia's lithium sector has expanded rapidly, becoming the largest hard rock lithium industry in the world, supplying approximately 50% of the global lithium market.

“WA's lithium industry supported more than 11 000 local jobs last financial year and has three new lithium hydroxide refineries currently under construction or in commissioning,” said Premier Roger Cook.

However, this growth has been overshadowed by a sharp and unexpected drop in lithium prices in 2024. The downturn has led to suspensions at some mines and processing plants, impacting jobs across the sector.

In response, the state government has introduced measures to assist lithium miners during the ramp-up phase of production and support downstream processing facilities for up to 24 months, a period during which lithium prices are expected to recover to sustainable levels.

LITHIUM INDUSTRY SUPPORT PROGRAMME
Through the Lithium Industry Support Programme, government trading enterprises, such as DevelopmentWA, Synergy, and Water Corporation, will temporarily waive government fees, helping to ensure the continuity of downstream processing. The total value of these fee waivers could reach A$90-million over the two-year period.

Additionally, to assist lithium miners in the ramp-up phase of their projects, the government will waive port charges and mining tenement fees for up to 24 months, valued at A$9.37-million.

A further A$50-million loan facility will be made available to help lithium miners access interest-free loans, providing financial relief during this challenging period. Miners will need to demonstrate their financial position and operational plans to qualify. These loans will be repaid through regular quarterly payments over two years, beginning after the interest-free period ends. Repayment will continue until average lithium spodumene prices have exceeded $1 100 a tonne for two consecutive quarters, or until June 30, 2026, whichever comes first.

“This package will provide important temporary and responsible support for WA's fledgling lithium industry, taking into account the extremely challenging market conditions it is facing,” Cook said. “It is designed to help our critical lithium industry and its workforce navigate through this turbulent period—supporting local jobs and doing what’s right for WA.”

INDUSTRY RESPONSE
The Chamber of Minerals and Energy (CME) welcomed the relief package announcement, with CEO Rebecca Tomkinson saying that it was clear lithium prices were likely to be lower for longer, but that the long-term prospects of the commodity remained strong. 

“Falling lithium prices have forced a growing number of lithium operations to suspend or cease operations over the past 18 months,” Tomkinson said. 

“However, we know lithium remains a key commodity for the global energy transition and WA is well-placed to play a major role both mining and processing the crucial battery input. 

“CME has long advocated for state government assistance to help lithium facilities through this difficult period and ensure they are well placed to quickly ramp up production when commodity prices improve. 

“Today’s announcement is welcome recognition of the commercial reality facing key players in WA’s resources sector," said Tomkinson.

Association of Mining and Exploration Companies CEO Warren Pearce said the support package was a positive signal of support from the government. "They have listened and acted accordingly, by backing our emerging industries.”