❓ Dr. Honey questions the Premier on the future of WA's battery industry following BHP's Kwinana refinery closure. The Premier reaffirms commitment to downstream processing and diversification, highlighting WA's potential in lithium and vanadium batteries.
AnsweredQoN 537Legislative Assembly
QuestionView source ↗
NICKEL INDUSTRY — RECHARGEABLE BATTERIES
537. Dr D.J. HONEY to the Premier:
In 2019, the government announced
the Future battery industry strategy: Western Australia , and the Premier
subsequently made many promises to the people of Western Australia that the
government would establish this new
downstream manufacturing industry in our state. Given that nickel sulphate is a
key ingredient for rechargeable batteries
and that BHP has announced the mothballing of its nickel sulphate refinery at
Kwinana I ask the following.
(1) What actions
is the government taking to ensure that the key ingredients for rechargeable
batteries will continue to be manufactured in Western Australia?
(2) Can the
Premier explain how and when his promise to establish a rechargeable battery
industry in Western Australia will be achieved?
Mr W.J.
Johnston : What a stupid question!
537. Dr D.J. HONEY to the Premier:
In 2019, the government announced
the Future battery industry strategy: Western Australia , and the Premier
subsequently made many promises to the people of Western Australia that the
government would establish this new
downstream manufacturing industry in our state. Given that nickel sulphate is a
key ingredient for rechargeable batteries
and that BHP has announced the mothballing of its nickel sulphate refinery at
Kwinana I ask the following.
(1) What actions
is the government taking to ensure that the key ingredients for rechargeable
batteries will continue to be manufactured in Western Australia?
(2) Can the
Premier explain how and when his promise to establish a rechargeable battery
industry in Western Australia will be achieved?
Mr W.J.
Johnston : What a stupid question!
AnswerView source ↗
I will take the interjection from
the member for Cannington!
Madam Speaker, I thank the
member for the question. Obviously, we are very committed to not only the
development of our critical minerals and rare earths industry, but also,
of course, the development of the processing of those resources so that we can
be part of the global battery manufacture supply chain. That is why recently,
as I said in answer to an earlier question, we have updated our critical
minerals and battery manufacturing strategy. We will continue to do that. But,
like every country that is participating in these nascent industries, we are
subject to the global fluctuations associated with the development of these
important mineral resources.
Obviously, the decision by Nickel
West to suspend operations at its facilities is disappointing, and our thoughts
are with the thousands of workers and their families affected by that
suspension. We continue to do whatever we can to support those workers. I am
very pleased that there have been great efforts by the company to make sure
that at least those frontline workers are redeployed in other parts of the BHP
operations within this state. This announcement again shows just how volatile
the global commodity markets are, and, as I said before, reinforces the
important work that we are doing to diversify our economies so that we get away
from these boom–bust cycles and make sure that we have a more resilient
economy. The way we do that is to continue to make sure we drive ourselves into
the downstream processing chain to make sure that we increase the value of the
products we produce for export. That means obviously we want lithium spodumene
to be turned into lithium carbonate—what comes before hydroxide?
Mr P.J. Rundle : Hydroxide.
Mr R.H. COOK : No; there is a step
before hydroxide that one company in the north is doing.
Mr W.J. Johnston : Carbonate.
Mr R.H. COOK : I think it is
carbonate—yes, lithium carbonate and lithium hydroxide. Of course,
lithium hydroxide is notoriously difficult to process, but we know that a range
of companies are looking to base themselves in Western Australia because they
want to be close to the source, they want access to a well-trained and informed
workforce and they want to be in the jurisdiction of a government that gets
their business and will support their business. Of course, that is part of the
work that we are doing with the Global Advanced Industries Hub at the Western
Trade Coast, which is our Kwinana industrial strip, to set it up for these
renewable energy opportunities of the future.
Of course, the battery manufacturing
technology and supply chain is in its very early stages. We know that at the
moment we are particularly focused on lithium ion batteries, but we are also
the only state in the world where one can get every component of a vanadium ion
battery, as well. I think that vanadium ion batteries have a huge future in
relation to empowering remote communities and, of course, members can imagine
that that sort of technology would be incredibly powerful when it comes to
empowering villages in places like Indonesia, for instance.
This story has just begun, but there
is one jurisdiction in the world that is in a position to take advantage of
this story, and that is Western Australia. As I said, every element of a lithium
ion and vanadium ion battery are found in this state. But, more than that, we
have the wit, enterprise, strength and experience to drive globally significant
industries. We have seen it in iron ore, we have seen it in LNG, and we will
see it in these new emerging industries associated with critical minerals and
the renewable energy future.
the member for Cannington!
Madam Speaker, I thank the
member for the question. Obviously, we are very committed to not only the
development of our critical minerals and rare earths industry, but also,
of course, the development of the processing of those resources so that we can
be part of the global battery manufacture supply chain. That is why recently,
as I said in answer to an earlier question, we have updated our critical
minerals and battery manufacturing strategy. We will continue to do that. But,
like every country that is participating in these nascent industries, we are
subject to the global fluctuations associated with the development of these
important mineral resources.
Obviously, the decision by Nickel
West to suspend operations at its facilities is disappointing, and our thoughts
are with the thousands of workers and their families affected by that
suspension. We continue to do whatever we can to support those workers. I am
very pleased that there have been great efforts by the company to make sure
that at least those frontline workers are redeployed in other parts of the BHP
operations within this state. This announcement again shows just how volatile
the global commodity markets are, and, as I said before, reinforces the
important work that we are doing to diversify our economies so that we get away
from these boom–bust cycles and make sure that we have a more resilient
economy. The way we do that is to continue to make sure we drive ourselves into
the downstream processing chain to make sure that we increase the value of the
products we produce for export. That means obviously we want lithium spodumene
to be turned into lithium carbonate—what comes before hydroxide?
Mr P.J. Rundle : Hydroxide.
Mr R.H. COOK : No; there is a step
before hydroxide that one company in the north is doing.
Mr W.J. Johnston : Carbonate.
Mr R.H. COOK : I think it is
carbonate—yes, lithium carbonate and lithium hydroxide. Of course,
lithium hydroxide is notoriously difficult to process, but we know that a range
of companies are looking to base themselves in Western Australia because they
want to be close to the source, they want access to a well-trained and informed
workforce and they want to be in the jurisdiction of a government that gets
their business and will support their business. Of course, that is part of the
work that we are doing with the Global Advanced Industries Hub at the Western
Trade Coast, which is our Kwinana industrial strip, to set it up for these
renewable energy opportunities of the future.
Of course, the battery manufacturing
technology and supply chain is in its very early stages. We know that at the
moment we are particularly focused on lithium ion batteries, but we are also
the only state in the world where one can get every component of a vanadium ion
battery, as well. I think that vanadium ion batteries have a huge future in
relation to empowering remote communities and, of course, members can imagine
that that sort of technology would be incredibly powerful when it comes to
empowering villages in places like Indonesia, for instance.
This story has just begun, but there
is one jurisdiction in the world that is in a position to take advantage of
this story, and that is Western Australia. As I said, every element of a lithium
ion and vanadium ion battery are found in this state. But, more than that, we
have the wit, enterprise, strength and experience to drive globally significant
industries. We have seen it in iron ore, we have seen it in LNG, and we will
see it in these new emerging industries associated with critical minerals and
the renewable energy future.
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