The Australian state of Western Australia (WA) has authorised a A$15mn ($9.3mn) grant to the midstream demonstration plant project at miner Pilbara Minerals’ Pilgangoora lithium operation in WA’s Pilbara region.
A joint venture (JV) between Pilbara Minerals and Australian technology firm Calix aims to construct and operate a unit featuring the world’s first industrial-scale electric spodumene calciner — decarbonising one of the most carbon-intensive processes in the battery materials supply chain.
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According to Pilbara Minerals, delivering a more lithium-enriched midstream product “has the potential for industry-wide benefits including lower carbon emissions through the reduced transport of waste, greater utilisation of the mineral resource and overall value creation”. But, in October, the JV partners announced construction works not currently under contract for the project would be paused until lithium market conditions were more supportive or further government support for project continuation could be secured.
The new grant “provides meaningful funding support and enables the respective Pilbara Minerals and Calix Boards to consider a recommencement of the demonstration plant project”. But it is not yet guarantee a restart of the paused initiative.
“This is a great demonstration of the WA government’s commitment to supporting downstream onshore processing and innovation through supporting two Australian companies in a project which could meaningfully reduce carbon emissions of the global lithium industry,” says Pilbara Minerals CEO Dale Henderson.
“This funding boost goes a long way to supporting the delivery of the midstream demonstration plant project and will enable the JV to consider recommencement of the project. We remain fully supportive of the midstream strategy and our joint venture, recognising the project’s potential to transform the lithium supply chain through lower emissions and value-adding processing.”
“Completing the construction of this project would put WA in a stronger position when lithium market conditions turn by increasing benefits to the state in the form of employment, royalites and economic diversification,” the firm argues.
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