The Western Australian Government has followed through on an election promise to cap the royalty rate for vanadium products at 2.5 per cent.
The move was welcomed by industry bodies and vanadium miners, who said it provides much-needed certainty for the emerging sector.
Western Australian Minister for Mines and Petroleum David Michael said the decision offers clarity around the state government’s royalty settings for vanadium miners and the state’s nascent vanadium battery industry.
“This move will give industry players the financial confidence and certainty to make the significant investments required to see their projects come to fruition,” Michael said.
“This certainty is something the industry has requested, and the Cook Government has agreed and delivered.”
The Association of Mining and Exploration Companies (AMEC) welcomed the revised framework, saying it improves project viability while strengthening Western Australia’s position in critical minerals and energy storage supply chains.
AMEC chief executive officer Warren Pearce said the new royalty rate delivers “much-needed support” for developers and investors at a “critical point” for the sector.
“Strategically, the royalty change aligns with the state’s desire to strengthen domestic battery capabilities as it continues to phase out coal-fired power stations,” Pearce said.
“With Western Australia hosting some of the world’s most prospective vanadium resources, this important mineral underpins long-duration energy storage and supports broader decarbonisation and grid stability objectives.”
The WA Government said the revised framework also maintains a zero-royalty rate for the midstream production of vanadium electrolyte used in vanadium battery manufacturing.
The policy aligns with plans to install Australia’s first locally built utility-scale vanadium battery in Kalgoorlie.
AMEC said the royalty revision “responds directly” to concerns it has raised over the past two years regarding the need for certainty, consistency across the value chain and settings that encourage downstream processing.
“Importantly, today’s announcement also maintains a zero-royalty rate on vanadium electrolyte production,” Pearce said.
“This reinforces the opportunity to move beyond raw material extraction and into higher-value battery supply chains, particularly in regional centres such as Kalgoorlie.
“This reform sends a positive message to investors that Western Australia understands the commercial realities facing critical mineral developers and is prepared to adapt long-standing frameworks to support emerging industries.”
Read more: Vanadium gears up for growth
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