IGO Ltd to build an Australian first battery material facility in WA

IGO Limited has secured approval from the Western Australian Government’s Lands Panel for a 30-hectare land in the Kwinana-Rockingham Strategic Industrial Area (SIA) that will be home to an integrated battery material facility. 

The development of this new facility will set Western Australia as home for Australia’s first commercially produced precursor cathode active material (PCAM). 

“We know that Kwinana-Rockingham SIA is prime real estate for advanced industries such as PCAM. 

“With the potential to be Australia’s first commercial producer of PCAM, this integrated battery material facility is a perfect fit for the Kwinana-Rockingham SIA. 

“As the global energy transition continues, the State Government is backing projects that will help us decarbonise and set up Western Australia’s economy for future success,” State Development, Jobs and Trade Minister Roger Cook said. 

IGO Limited, along with its partner Wyloo Metals, is working towards making a financial investment decision for the project that involves integrating a downstream nickel refinery with a plant that produces high-value nickel dominant PCAM. 

The financial investment decision, however, is still subject to engaging a PCAM partner on the project, delivery of a feasibility study in the second half of 2024, environmental permitting and approvals as well as broad stakeholder engagement and achievement of commercial metrics. 

“We are excited about securing this site at Kwinana – a pivotal step in our ambitions to be better integrated into the battery supply chain. We strongly believe that by bringing the right partners together, we will deliver a fully optimised nickel supply chain delivering low-cost, low-carbon, responsibly produced battery chemicals for the global battery and electric vehicle industry, to be delivered through an integrated battery material facility here in Western Australia. 

“The Kwinana-Rockingham Strategic Industrial Area is rapidly emerging as a globally significant battery material hub with existing lithium hydroxide production, established infrastructure and a skilled residential workforce. I would like to acknowledge the support of the Western Australian State Government as we work together with a combined ambition of continued growth of the local battery chemical industry,” IGO Limited Acting CEO Matt Dusci said. 

The project is estimated to have a capital expenditure cost between $600 million and $1 billion, creating 1,200 jobs during its construction and 250 jobs during its operations. 

PCAM is a form of advanced chemical manufacturing, and it is also a key material utilised in lithium-ion batteries that power cleans technologies including electric vehicles. 

“When it comes to battery and critical minerals, Western Australia has significant competitive advantages both nationally and internationally. 

“The State has welcomed more than $9 billion of investment across the sector, including the establishment of globally-significant mineral processing facilities. 

“There is no better home for Australia’s first commercial PCAM producer than Western Australia. I look forward to seeing how this project helps the State move down the battery value chain and grow the industry for years to come,” Mines and Petroleum and Energy Minister Bill Johnston said. 

The project partners – IGO Limited and Wyloo Metals – plan to build a globally competitive integrated facility that has a strong environmental, social and governance (ESG) as well as sustainability credentials. 

The Kwinana-Rockingham SIA is one of three strategic industrial areas in the State where the Western Australian Government is allocating land for green energy projects to help strengthen and diversify the State’s economy and create local jobs for generations. 

“Land allocated in our Strategic Industrial Areas is one of the most effective incentives to attract investment into Western Australia to support our growing renewable energy industries. 

“Projects like this proposed development will create and support a number of local jobs while continuing to diversify and strengthen Western Australia’s economy. 

“Through strategic land releases, our Government is boosting emerging industries, such as battery chemical manufacturing, which have the potential to transform our economy and create skilled local jobs for generations of Western Australians to come,” Lands Minister John Carey said. 

Source: Government of Western Australia – Media Statements; Australian Manufacturing; WA Government – Announcements; IGO Limited