Greener steel, lithium and graphite the focus in new state government funding round

Greener production of steel and key battery supply chain materials has been targeted by the Western Australia Labor government in a major funding round spread across three separate decarbonisation projects in the state.

A total of $34 million in state money will be allocated across the three projects from the state’s Investment Attraction Fund, a $100 million fund which was established in 2022 to encourage new investment in the state that will create local jobs and contribute to a more diversified economy.  

“WA is on track to become a global clean energy powerhouse, to keep our economy for the long term and create the jobs of the future in our state,” said Roger Cook, premier of Western Australia.

“These projects are at the cutting edge of the global energy transition – whether it’s reducing emissions from steel or producing the batteries the world needs for a clean energy future.”

Perth-based Pilbara Minerals Limited was awarded $15 million for its Mid-Stream Demonstration Plant Project at the company’s Pilgangoora lithium operation in the Pilbara region of Western Australia.

The demonstration-scale plant is a joint venture between Pilbara Minerals and Calix Limited which is aiming to construct and operate a demonstration-scale plant featuring the world’s first industrial-scale electric spodumene calciner – a process which would decarbonise one of the most carbon-intensive processes in the battery materials supply chain.

The two companies announced in October of last year that construction works not currently under contract for the project would be paused until lithium market conditions are supportive or further government support for project continuation could be secured.

The new funding opens the door for the joint venture to get back underway.

“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,” said Dale Henderson, managing director and CEO of Pilbara Minerals.

“This funding boost goes a long way to supporting the delivery of the Mid-stream Demonstration Plant project and will enable the JV to consider recommencement of the project.”

A further $15 million has been awarded to a joint venture formed between South Korean steel manufacturer POSCO and Port Hedland Iron for their Port Hedland Iron Project, which is designed to decarbonise the steel manufacturing supply chain through the production of low-carbon hot briquetted iron for export to the Asian market.

The final $4 million awarded by the WA government has gone to Australian owned International Graphite, which bills itself as Western Australia’s first mine-to-market graphite producer and supplier to the global battery market.

International Graphite will use the new funding to fast-track the Springdale Graphite Resource for its Collie downstream processing facilities and to develop the next stages of technology and processes required to produce critical battery materials.