Western Australia plots lithium royalty regime

Image: Pilbara Minerals

The Western Australian Government is set to introduce a royalty arrangement for lithium producers to encourage downstream processing and manufacturing in the state.

Lithium hydroxide and lithium carbonate will fetch a 5 percent feedstock royalty rate, where those are the first products sold and the feedstock is spodumene concentrate.

This royalty arrangement will clear up any uncertainty regarding lithium royalties, compared with the previous regulations, according to the Western Australian Minister for Mines and Petroleum Bill Johnston.

The new lithium feedstock royalty rate, introduced via amendment to mining regulations 1981, will ensure all lithium producers are treated equally.

“The McGowan Government is committed to supporting Western Australia’s battery materials industry,” Johnston said.

“Updating the royalty arrangements provides a fairer system for all lithium producers and will enable Western Australia to move up the battery value chain beyond mining and processing.

“This will create more jobs and encourage innovation in meeting the needs of the growing demand for electric vehicles and battery storage systems.”

The review into lithium royalties, which is part of the government’s future battery industry strategy, involved extensive consultation with industry.

Western Australia is increasingly becoming an internationally attractive destination for downstream processing and manufacturing of lithium and other battery minerals, according to Johnston.

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