Western Australia wants to work with Chinese partners as it...

Western Australia wants to work with Chinese partners as it builds out its green energy industry, the state premier said in Beijing on Tuesday, even as the federal government has indicated a preference for other partners in the critical minerals sector.

Western Australia accounts for roughly half of Australia's goods trade with China, much of it in iron ore. The state also holds most of Australia's lithium deposits and is building an industry to process its minerals into battery chemicals.

A lithium plant jointly owned by IGO Ltd (IGO) and China's Tianqi Lithium Corp 002466.SZ last year produced the country's first battery-grade lithium hydroxide.

Western Australia wants to widen its relationship with China into new areas including "renewable energy (and) some downstream processing of resources" and manufacturing in the state, Premier Mark McGowan said in a video sent to media organizations highlighting his first visit to China in four years.

"It (the visit) is about ensuring that our existing relationship will remain strong ... but ensuring that in the future we can diversify the relationship into areas we haven’t worked on before."

However, his comments come only days after Australia's resources minister Madeline King said the country is seeking investment from "likeminded partners" into its critical minerals sector to reduce its reliance on China.

McGowan also addressed a lunch of the China-Australia Chamber of Commerce on Tuesday attended by Australia's ambassador to China along with representatives of Fortescue Metals Group (FMG) , Albemarle China and Rio Tinto China among others.

The Premier's office did not immediately respond to a Reuters request for comment on Chinese investment in the critical minerals sector in Western Australia.