Kwinana hub set to become key in global battery chain
Kwinana is emerging as a potential global processing hub in the burgeoning lithium-ion battery supply chain.
While most of WA’s battery raw materials such as lithium, nickel and cobalt are shipped as ore or concentrate, several companies have recently announced plans to move further down the supply chain to produce higher- value products.
Tianqi Lithium (lithium hydroxide) and Nickel West (nickel sulphate) are already establishing downstream processing operations on the industrial strip while Kidman Resources and its joint venture partner, Chile’s SQM, are also examining Kwinana, among other sites, as the potential location for a planned lithium carbonate plant.
Ken Brinsden, the managing director of aspiring lithium miner Pilbara Minerals, said last week the company was exploring downstream processing opportunities and Kwinana was the obvious location for such an operation.
Western Areas and Independence Group have also flagged moves towards value-added processing.
Lithium Australia chairman George Bauk noted in the company’s annual report yesterday that the Kwinana/Rockingham area could be destined to become the world’s battery production centre.
He said a significant-sized graphite production facility would be the next logical development for Kwinana.
Tianqi Lithium Australia general manager Phil Thick said Kwinana becoming a hub for battery material production was still a few years off but the potential definitely existed.
Downstream, value-added processing has long been considered the Holy Grail for the WA resources sector, with several notable failures including BHP’s HBI plant at Port Hedland and Rio Tinto’s HIsmelt pig iron ore venture in Kwinana.
Mr Thick said battery manufacturers would increasingly demand higher quality and consistency from battery material producers and that was where WA could excel over South American brine lithium producers.
Last month another lithium player, Mineral Resources, announced plans to work with ASX-listed Hazer Group at Kwinana to investigate a plant capable of producing ultra-high purity, battery-grade synthetic graphite. Later this month, First Graphite will open a $1 million facility in nearby Henderson.
