The Western Australian government has pledged to support the development of a vanadium battery industry as part of its Made in WA Plan, should it secure re-election.
Premier Roger Cook announced that a WA Labor government would apply a 2.5 per cent royalty for vanadium products while maintaining a zero-royalty policy on vanadium electrolyte.
The commitment follows Labor’s recent election promise to install a 50-megawatt, 10-hour vanadium battery in Kalgoorlie, using locally sourced vanadium, as revealed in a news release.
The move aims to stimulate investment in downstream processing and establish Western Australia as a key player in vanadium battery production.
Warren Pearce, CEO of the Association of Mining and Exploration Companies (AMEC), welcomed the announcement, noting that the organisation had advocated for changes to the State’s royalty framework since 2021.
“It became obvious that new vanadium products, such as vanadium pentoxide, weren’t properly captured by the State’s royalty framework,” Pearce said.
He also highlighted the potential economic benefits of retaining no royalty on vanadium electrolyte.
“The decision to also retain no royalty on vanadium electrolyte creates a powerful incentive for companies to invest in going downstream and developing electrolyte, the key ingredient in vanadium batteries,” Pearce added.
According to AMEC, the policy could enhance Western Australia’s ability to produce vanadium electrolyte and manufacture vanadium batteries locally, catering to both domestic and national demand.
“The opportunity for Western Australia to value-add to our vanadium, make vanadium electrolyte, and build vanadium batteries in Western Australia, for use here in Western Australia and Australia, is an opportunity too good to miss,” Pearce said.
“This commitment will help attract investment in vanadium projects and the value-adding required to make vanadium electrolyte and vanadium batteries,” he said.
“AMEC has been working closely with the government and vanadium members over the past four years to find ways to support this emerging market. We are delighted to see WA Labor recognize the potential of this industry and the benefits that it will deliver for Western Australia.”
The policy announcement is expected to provide a regulatory framework that supports industry growth, with additional incentives such as the proposed Household Battery Scheme designed to create domestic demand for vanadium batteries.
