Wesfarmers delays lithium investment decision

A final investment decision for Wesfarmers and SQM’s proposed lithium project in WA has been delayed, as the joint venture undertakes further work to reduce its cost.

Wesfarmers and Chilean major Sociedad Química y Minera (SQM), through the Covalent Lithium joint venture, are planning to develop a mine and co-located concentrator at Mt Holland, as well as a lithium hydroxide refinery in Kwinana.

Covalent recently received development approval of the plant, which is expected to produce about 45,000 tonnes of lithium hydroxide each year for the supply of lithium batteries (used in electric vehicles).

Following a recently completed definitive feasibility study, Covalent agreed to undertake further work on the project and, as a result, delay the final investment decision until March 31.

Wesfarmers said further work would include on the design of the project (to reduce capital and operating costs) and opportunities to improve utility and infrastructure solutions.

Managing director Rob Scott said actions taken by the JV would benefit the Mt Holland project.

“Once completed, the project is expected to play an important role in the global lithium hydroxide market with a long-term outlook that remains attractive,” he said.

SQM chief executive Ricardo Ramos said he was pleased with the work the JV had done on Mt Holland.