Green light for Kwinana lithium stage 2

Chinese company Tianqi Lithium has approved the second stage of its processing plant in Kwinana, a $300 million investment to double production capacity to 48,000 tonnes of lithium hydroxide per annum.

Stage one of the facility is already under construction, a $400 million project which will be the state’s first manufacturing operation to upgrade lithium concentrate into lithium hydroxide, used in batteries.

Business News revealed that initial investment had got the green light in September last year.

The latest move comes just weeks after development assessment panel approval for stage two of the project, which has progressed rapidly since it was first announced in mid 2017.

Tianqi Lithium Australia’s general manager Phil Thick said there was high enthusiasm in the company’s leadership for the project.

It is Tianqi’s first plant outside of China, with two existing facilities in that country.

“(The) Tianqi Lithium board’s unanimous support for this stage two expansion is a huge vote of confidence in our Australian operations and will see the company spearheading the Western Australian lithium industry,” Mr Thick said.

“Ordering of components and equipment for stage two will start in earnest now and the Kwinana processing plant site is expected to remain a hive of activity with stage one creating 500 local jobs which will continue under stage two.

“Long term permanent jobs at the plant will increase from 115 to 170 and we are set to maintain our 80-85 per cent local content materials target.”

Kwinana stage two is one of a range of lithium projects under construction or advanced planning that will bring up to $4.6 billion of export revenue to the state per annum by the end of the decade.

Tianqi also holds a 51 per cent stake in Talison Lithium, which operates the Greenbushes mine, the site of another expansion project where $320 million is being spent to double capacity.

Other projects include the Altura Mining Pilgangoora lithium mine and Pilbara Minerals lithium mine, also at Pilgangoora.

Both are to begin production next year.