The Australian Government is investing significantly to secure the nation’s role in renewable energy supply chains, critical for the global transition to net-zero emissions.
According to an announcement, a combined $230 million from government lenders is set to turbocharge the Kathleen Valley Lithium Project in Western Australia.
The $110 million from the Clean Energy Finance Corporation and $120 million from Export Finance Australia will help battery minerals producer Liontown Resources complete construction of the major lithium mine located north of Kalgoorlie. Once operational, the project is expected to create around 450 ongoing jobs.
Kathleen Valley could produce about 500,000 tonnes of spodumene concentrate annually – a vital raw material for manufacturing lithium-ion batteries. Importantly, it will be one of the world’s lowest emissions lithium mines, powered by at least 60 per cent renewable energy.
“Australia has nine out of ten critical minerals needed for batteries, giving us a massive opportunity in the net-zero transformation,” Federal Energy Minister Chris Bowen said.
“Making lithium a major export earns us a place in global automotive and renewables value chains.”
Federal Resources Minister Madeleine King highlighted the project shows how the resources sector is driving the low-carbon transition with government support.
“To meet net-zero, we need more mining for solar, batteries, and wind farms reducing emissions,” she said.
Liontown has already secured substantial offtake agreements with Tesla, Ford, and others. The company aims to move into downstream processing, allowing Australia to capture more lithium battery value domestically.
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