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Western Australia to use assistance for having a hard time lithium market

Western Australia will offer a fee payment holiday for business producing lithium hydroxide as well as lithium designers in the ramp up phase of operations to alleviate pressure on the industry battling an extended cost decline for the battery material.

Australia produces around half of the world's lithium but a. near two-year downturn has actually required a swathe of lithium producers. to delay growth plans or cut production.

Proposed fee waivers will make an application for approximately two years, and for. lithium designers will apply to port charges and mining. tenement charges.

The state federal government will also provide an interest totally free A$ 50. million loan center to assist lithium miners under pressure to. sustain their operations, it said in a declaration. The total. package deserves A$ 150 million.

The interest totally free duration will stop after typical lithium. spodumene costs surpass $1,100 per tonne for two succeeding. quarters, or by June 30, 2026 if not stopped previously then. Spodumene costs last traded at $790 a tonne.

The support bundle is practical and available instantly. and will offer some real relief to industry, CEO Raj. Surendran of Tianqi Lithium Energy Australia (TLEA) stated in a. statement. TLEA is a tie-up in between China's Tianqi Lithium. and Australia's IGO.

Nevertheless, more support from state and federal governments is. required for the industry to grow while still fulfilling its. emissions targets, Surendran included.

Amongst Australia's two other hydroxide manufacturers, Albemarle. stopped building of an assembly line at its Kemerton. center and idled a 2nd mid year due to depressed market. conditions, while Wesfarmers is proceeding to build out. its Mt Holland lithium hydroxide project with Chile's SQM .

In the 2023-24 financial year, lithium miners created. A$ 8.4 billion in sales and provided A$ 710 million in state. royalties, the federal government said.

(source: Reuters)