By Oliver Gray
Investing.com -
In a bid to reduce global reliance on China, which dominates the sector, the state of Western Australia has allocated land for a battery metal processing facility proposed by IGO Ltd (ASX:IGO) and Wyloo Metals. The proposed facility is set to produce nickel-cobalt-manganese precursor cathode active material, used to make components for lithium-ion batteries. This move is expected to boost critical mineral value chain upscaling within the country.
Australia supplies almost half of the world's lithium and is a significant producer of rare earths; however, it aims to move up the critical mineral value chain so that more minerals can be processed at home. The proposed plant will cost up to A$1 billion ($678 million) and will cover 30 hectares (74 acres) of land within the Kwinana-Rockingham Strategic Industrial Area.
The CEO of IGO believes mid-stream battery chemical processing is an area where Australia can be most competitive globally while also integrating better into the battery supply chain. A feasibility study due in mid-2024 and finding a project partner with experience in battery chemical processing are required before making any final investment decisions.
Western Australia holds most of its reserves for critical minerals, making it ideal for this push towards building processing capacity. Furthermore, this site will be next door to Kwinana Lithium Hydroxide plant jointly owned by IGO and Tianqi Lithium Corp., which produced last year’s first-ever battery-grade lithium hydroxide, an essential input for EV batteries.