Western Australia Rewires Its Battery Supply Chain

Western Australia bets on downstream processing to stay competitive in the battery boom 

15 Oct 2024

Western Australia is moving beyond the pick and shovel. With a bold new strategy aimed at 2030, the state is making a play to become a global hub not just for mining lithium and nickel, but for refining them into battery-ready materials.

For years, WA's wealth in critical minerals has been exported in raw form. Now, the government wants to keep more of that value onshore. Its Battery and Critical Minerals Strategy outlines a shift toward producing high-grade components such as lithium hydroxide and nickel sulphate, key ingredients in electric vehicle batteries.

The change isn’t just about dollars. It’s also about geopolitical leverage and climate goals. As nations scramble to secure low-emission supply chains, Western Australia is positioning itself as a stable, ethical source of processed minerals.

The private sector is responding. Albemarle is weighing an expansion of its Kemerton plant, while Covalent Lithium is building a high-tech facility in Kwinana. The government is smoothing the path with incentives: faster approvals, upgraded infrastructure, and long-term policy signals.

“Western Australia has the resources and the know-how,” said Mines and Petroleum Minister David Michael. “Now we have the policy firepower to match.”

Green credentials are central to the pitch. With global automakers under pressure to prove the integrity of their supply chains, WA is emphasising sustainability, ethical sourcing, and transparency.

Still, hurdles loom. Infrastructure gaps, labour shortages, and stiff competition from international players could slow the momentum. Yet companies like IGO, already active in both lithium and nickel, see the strategy as a growth engine.

With global battery demand set to triple by 2030, the timing is critical. Western Australia is betting that by shifting from an exporter to a processor, it can transform its mineral riches into long-term industrial muscle.