WA / Perth to Supply 50% of the Worlds Lithium

Tesla meets with Premier to discuss options in 'Lithium Valley' Perth

Citi analyst Clarke Wilkins last month predicted WA would supply more than half the world’s lithium by the end of 2018.

The partnership on May 4 announced it had secured rights from LandCorp to build on the 76-hectare Kwinana industrial area site, expected to begin operations in 2021, create 400 construction jobs and 150 ongoing jobs.

Nearby, the world's largest processing plant is being built by Chinese lithium producer Tianqi for $700 million.

The area, nicknamed “Lithium Valley”, has positioned WA to take advantage of a growing market for electric cars and house batteries.

The Premier’s office confirmed Tesla representatives would attend a function at the US Consulate in Perth on Tuesday night with Deputy Premier Roger Cook, before meeting with Mr McGowan and other ministers over the next two days.

They had already met other stakeholders on Tuesday, including members of the Western Harbours Alliance, a not-for-profit championing the cause of a new Kwinana port, and the authors of a new Curtin University/Regional Development Association report.

A preview of the report, titled Lithium Valley: establishing the case for energy metals and battery manufacturing in Western Australia, will be released on Thursday at the Innovate Australia – Advanced Materials forum.

One of the authors, Curtin University sustainability professor Peter Newman, said the report detailed how lithium batteries could mean 100,000 jobs and $50 billion in profit for Australia.

“I’m also on the Intergovernmental Panel on Climate Change and the key thing we’re working on at the moment is, essentially, ‘electrify everything’,” he said.

“We must accelerate the removal of coal and oil and the best way to do that is electrifying industry, transport and buildings.”

He said the report to be published documented how rapidly and dramatically the demand for lithium would grow.

“The buildings part is happening around the world very quickly, much quicker than ever predicted, and Perth is a perfect example with 30 per cent of houses now having rooftop solar,” he said.

“No one predicted these kinds of changes. Solar and wind are happening in a way the market can manage and batteries are now part of that equation.

“Electric bikes, trains, buses, vehicles are all available. For most people, the car they have now driven on gasoline or diesel will probably be their last car that runs on fossil fuels.”

He said to not only mine lithium but make energy storage batteries in WA would require acceleration of outer harbour plans.

“This is immense for Western Australia if we can get it right – this is why ministers are keen on it,” he said.

A bigger harbour
Western Harbours Alliance chairwoman Kim Dravnieks said investors were looking for low sovereign risk opportunities such as those Perth offered and this was why Tianqi was opening the world’s largest plant here.

WA offered a skilled workforce and stable government, while the Kwinana area offered the cost savings of an established industrial area home to related companies.

“We are really pleased that this innovation into the energy metals field is showing that we can be growing and diversifying our state rather than just shipping out raw materials," she said.

“The transport industry must be part of that supply chain; the Kwinana port is really going to be vital in capturing these industries and companies.”

The report to be released on Friday makes a case for industry in Kwinana, Geraldton and Kemerton, with other components in the Pilbara and Goldfields.

It says the cost of missing this development opportunity would be high for WA, both in direct losses and in lost opportunity to expand WA’s industrial and logistics infrastructure for further development.

“WA is no longer remote nor positioned at the far end of global supply chains. It is at the beginning of many of them and convenient to global markets,” the report says.

“This strategic and economic advantage will likely continue to improve as the economic rise of many nearby nations continues and Indian Ocean Regional economies drive the next global growth super-cycle. The energy metals or New Energy industries opportunity is not just about the domestic Australian market, it is almost solely focused on exports to fuel WA’s trading partners in a win-win trade deal.

“Commonwealth and State policies are yet to reflect WA and Australia’s coming of age and its changing strategic role and associated opportunities. There is good reason to redress this oversight urgently.”

Citi analyst Clarke Wilkins last month predicted WA would supply more than half the world’s lithium by the end of 2018.

And Tesla could be courting new partnerships in Australia, now the future of its agreements to build a virtual power plant connecting 50,000 home battery storage systems in South Australia have become uncertain under a new Liberal government in that state.

Queensland premier Annastacia Palaszczuk has also reportedly been in recent talks with Tesla.

 

A bigger harbour
Western Harbours Alliance chairwoman Kim Dravnieks said investors were looking for low sovereign risk opportunities such as those Perth offered and this was why Tianqi was opening the world’s largest plant here.

WA offered a skilled workforce and stable government, while the Kwinana area offered the cost savings of an established industrial area home to related companies.

Coogee, Spearwood, Hamilton Hill anyone ?

 

Outer harbour has been planned for a long time. Here is a planning document from 2011 Fremantle Ports Outer Harbour Project

 

Or is it better to invest in the lithium companies operating in Perth? KDR? GXY?

 

Some good news for the WA economy / property market - especially for those with properties south the river

 

I supply 50% of this forum's hot air, that doesn't mean it's Google ranking will increase any.

I can't possibly see how one could think that housing around Kwinana or Freo is likely to go UP based on the fact it's like to become more industrial.....

 

I'd look at every angle.
Lithium isn't rare, its in abundance in many parts of the world.
Tesla? Will they be around in 5 - 10 years? I don't know?
Those shorting the stock say no & point at the cash burn in $US per minute as to why.
I wouldn't buy a property based on Lithium demand/production anywhere.
But thats just me.

 

agree

Australia is the 4th in the list of countries with lithium reserves, so if lithium will be very popular in the future, I don't think Australia will lead the production as it's economically more effective to produce it in other countries, e.g. in Chile / Argentina / China. And re Tesla:

LONDON, Feb 7 (Reuters) - Tesla, the pioneer of the electric vehicle revolution, is turning to Chile to secure the lithium it needs to power its mass production drive.

Tesla and Chilean lithium producer SQM are “exploring” opportunities after the automotive company expressed interest in buying “important volumes” of the battery ingredient, according to Eduardo Bitran, head of Chilean development agency Corfo.

It’s an obvious place for Tesla’s chief executive, Elon Musk, to look for secure supply.

Chile's reservers are 3x Australian reserves, and labour costs are too high in Australia

 

We can dig Lithium up, truck it to ports etc but trying to create a processing plant at Kwinana will be a freaking nightmare - I mean, look at what Satterley had to go through for Mandogolap - the risk-averse decision makers in this state will simply reverse the approach and ask how a Lithium processing plant won't affect Orelia, Medina, Kwinana, Leda etc.

I can't see it making any waves in this state because we - as a people and therefore, as a government - don't invest in business and commercial; only housing. This thread alone is proof of that. Not one person asking how jobs at Henderson or Naval Base or Rockingham will be affected, where the industry could be....just "money coming to the area" and housing to go up by default.

I would have thought a good quality lunch bar serving amazing iced coffee to go, quality pies and sausage rolls and good lunches in this location would be a WAY better bet than a bloody house.

So nothing will change - except Lithium prices.

 

Would you invest for global supply through Chile or Australia? Political and sovereign risk and is a big factor.

 

In correct...mining is capital intensive....not labor intensive...this means WA would be be preferred place to mine from as capital would b ea lot safer than countries like Australia...which are perceived to be a lot more stable. Also most of the mines here would service China....

 

China has more lithium than Australia. They may import it... but not in the near future... only when they use all their reserves

 

it's common practice to invest into countries with high risks. E.g. international companies actively invest into Russia which is under heavy sanctions now and almost in war state with western countries. Investors just need to find right people there and give some control to them Even during WWII American companies invested into Nazi Germany.

 

Re reserves its also a little unknown.
When mining an explorations tarts I believe more material/less material can be found.

 

Before I begin - a few corrections to glaring errors of opinion passed off as fact.

Nazi Germany was a labour market powerhouse post-Weinmar republic - a devalued currency and exploited labour market was like the 1990s version of Taiwan. Hitler himself introduced the Enabling Act which removed civil liberties in 1933 - WELL AFTER the US Banks began working with the republic in 1924 through the Dawes and Young Plan to end war repatriations. The US did not "invest" in Nazi Germany but turned a blind-eye to Hitler's growing fascism until 1939.

It is NOT common practice for multi-billion dollar private corporations to expose themselves to undue sovereign risk. Investment in Russia would be reasonably stable as the government is stable despite Western protests to the contrary - the risk there is your home country imposing sanctions, not with Russia themselves.

China "invests" in Angola because their interests are covered with state-building exercises - the residents see a benefit to them being there.

I think you underestimate the complex nature of international business.

 

It's not an opinion, it's historical facts. Standard Oil, ITT, Ford, GM, Chase Bank, Morgan Bank, etc. They all operated during WII and had "agreements". All those docs/facts were declassified in 1978.

the government is stable, but its policy / actions are not stable at all. Sanctions there is the two ways road. There are other examples - Ukraine. Goverment is not stable there at all. There is actually a permanent war conflict there, and there are international investors there from different countries, e.g. ArcelorMittal, Fairfax Financial Holdings, Procter and Gamble, Raiffeisen bank. They continue to invest and re-invest. If US/EU wanted to completely stop russian aggresion, they could easily stop imports of oil/natural gas and export of machines and tools. However they don't do it and russians keep killing innocent people in Ukraine / Syria, and attack international flights.

Although I agree many investors prefer safe climate, others may operate in any conditions, including military conflicts, unstable governments, high inflation, corruption, etc.