Lithium royalty amendments to encourage downstream processing

• Amendments will further support WA’s battery materials sector
• Regulatory review included extensive consultation with industry

The McGowan Government will introduce a new royalty arrangement for lithium producers that will encourage downstream processing and manufacturing.

A five per cent feedstock royalty rate for lithium hydroxide and lithium carbonate, where those are the first products sold and the feedstock is spodumene concentrate, will be introduced as soon as practicable.

This new royalty arrangement clears up any uncertainty regarding lithium royalties, compared to the previous regulations.

The review into lithium royalties, which is part of the Government’s Future Battery Industry Strategy, involved extensive consultation with industry. 

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

This will help encourage further downstream processing of lithium in Western Australia.

 

Comments attributed to Mines and Petroleum Minister Bill Johnston:

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

“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.

“Western Australia is increasingly becoming an internationally attractive destination for downstream processing and manufacturing of lithium and other battery minerals.”