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THE WA Government is to temporarily waive taxes and fees for the lithium industry for up to two years in the face of a global plunge in prices.
The state government sees the industry as critical; WA supplied about 50 per cent of the world’s lithium.
In the 2023-24 financial year, lithium miners generated $8.4 billion in sales and delivered $710 million in State royalties and supported more than 11,000 jobs, the government says.
However, the industry has experienced a sudden and unexpected plunge in the price of lithium this year, which led to the suspensions of processing plants and reduced jobs.
The government has announced a Lithium Industry Support Program to help lithium miners in the ramp-up phase of production downstream processing for up to 24 months. These are:
- the temporary waiver of government fees for downstream processing for up to 2 years for up to $90m.
- port charges and mining tenement fees to be waived for up to 24 months for up to $9.37m.
- A $50m loan facility for temporary interest-free loans which will have to be repaid over two years after the end of the interest-free period.
WA Premier Roger Cook says the state has three new lithium hydroxide refineries under construction or commissioning.
“Lithium will continue to be an incredibly important element moving forward, particularly for the global energy transition,” he says.
“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.”
Deputy Premier Rita Saffioti says the industry “plays a huge role” in the state economy.
“We’re very aware of the challenges the lithium industry is facing at the moment and it’s in every Western Australians’ interest the industry gets the assistance it needs,” she says.
Mines and Petroleum Minister David Michael says the assistance will protect thousands of jobs.
“Lithium is a key element in the global energy transition as we move to achieve a goal of net zero emissions by 2050,” he says.
“Our lithium miners are experiencing very challenging conditions currently but we know they will play a crucial role in the future energy transition.”
