The Western Australian Government’s Industrial Lands Panel has approved IGO Limited’s request for land in the Kwinana-Rockingham Strategic Industrial Area (SIA), bringing the state one step closer to manufacturing the nation’s first commercially available precursor cathode active material (PCAM).
In a media statement, the government said the three-hectare land allocation will facilitate the proposed development of an integrated battery material facility that will produce high-value nickel-dominant PCAM.
PCAM, a form of advanced chemical manufacturing, is a crucial component of lithium-ion batteries, which drive environmentally friendly technology like electric vehicles.
The project seeks to make the integrated battery material factory the first to commercially produce PCAM in Australia with an estimated capital expenditure of between $600 million and $1 billion.
The Kwinana-Rockingham SIA is one of three in Western Australia where the McGowan Government is awarding land for green energy projects to enhance and diversify the state’s economy and create local jobs in the future.
State Development, Jobs and Trade Minister Roger Cook expressed his confidence that the Kwinana-Rockingham SIA is ideal for innovative businesses like 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,” Cook remarked.
Mines and Petroleum and Energy Minister Bill Johnston pointed out that when it comes to batteries and critical minerals, Western Australia has tremendous national and international competitive advantages.
He said, “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.”
Meanwhile, Lands Minister John Carey also commented on the recent land allocation, stating that projects like this proposed development will support and create a number of local jobs while diversifying and strengthening 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,” Carey said.
The Industrial Land Development Fund will receive a $35 million boost in the State Budget for 2023–24, bringing its total to $135 million.
For SIAs in the Pilbara, this top-up will be used to create business cases and start de-constraining initiatives.
IGO is also working with Wyloo Metals to make a financial investment decision, which is contingent on the project attracting a PCAM partner and completing a feasibility study in the second half of 2024.
The government said the project will employ up to 1,200 people during construction and around 250 once operational.
