Lithium mining in Australia
[7] It was opened in 1984 by Greenbushes Tin, which had discovered major lithium deposits at the site four years previously while exploring for tantalum.
[11] Mount Marion contains the world's second-biggest high-grade lithium mineral resources, with an estimated 71 million tonnes of spodumene.
By 2018, the company had "attracted a group of high quality, experience global offtake partners including Gangfeng Lithium, General Lithium, Great Wall Motor Company and POSCO" as potential customers of its Pilgangoora project[12] and was exploring options to scale the project.
[13] Pilbara Minerals commenced construction of its Pilgangoora project in January 2017 which was completed in late July 2018, producing its first lithium concentrate one month later.
[15] On 28 March 2019 Pilbara announced it will commence a partnering process to support its expansion of the Pilgangoora project.
[18] The Wodgina lithium mine in Western Australia is operated by a joint venture between Albemarle and Mineral Resources.
[23] The mine is estimated to contain 31 million tonnes of lithium-containing minerals, with a lithium oxide-equivalent content of 1.3%.
[25] Battery-grade lithium hydroxide was produced as part of the test works on spodumene mineral concentrate samples from the project in April 2021.
[23] Tesla, Inc. has contracted for 110,000 tonnes of spodumene concentrate over four years from the Finniss lithium mine.
For instance, Allkem, in addition to operating the Mt Cattlin mine, sources much of its lithium from various Argentinian sites and James Bay, Canada.
[46] The rapid growth and expansion of the electric vehicle sector has caused a surge in demand for lithium for lithium-ion batteries.
[47] This generates higher revenues[48] for existing and new market entrants, as reported in the Sydney Morning Herald: "Pilbara Minerals managing director and chief executive Ken Brinsden said the demand for higher quality battery materials put WA in the drivers seat"[49] The rising demand in the market for lithium "shows no signs of slowing"[50] in Australia, which hosts the "highest economic concentrations of lithium via several hard rock deposits".
[51] However, as reported by the Australian Financial Review, as supply of lithium grows, the value of existing companies falls.
[52] Supply continues to grow as a royal settlement struck by Chilean producer SQM gives the company permission over the next 7 years to more than triple its production,[52] also reported in the Sydney Morning Herald, "but federal forecasts in the resources and energy quarterly found while WA will be pulling out a record 419,000 tonnes of lithium ore spodumene from the ground, it won’t reap the same high prices the industry has experienced.
The facility aims to make Western Australia a hub for battery-making and research surrounding lithium battery manufacturing.
