Lithium Valley (2018)

2 Executive Summary Lithium Valley is a cluster of collaborating and competing New Energy industries that are based around the economy of Lithium Ion-based batteries. This report sets out why WA is the ideal location for Lithium Valley building on the abundance of critical minerals that are now being called New Energy metals. There will be various regional mining and processing locations but this report makes a case for secondary processing primarily in Kwinana, Geraldton, Kemerton with specialised processes in the Pilbara, Kimberley and Goldfields. New Energy metals are those critical to the manufacturing of batteries that are so critical to future society. These metals include lithium, nickel, manganese, cobalt, vanadium, tin, tantalum, magnesium, rare earths and others. Western Australia (WA) will continue to enjoy competitive advantages as an efficient and reliable supplier of most New Energy metals for the foreseeable future. By contrast, developing and advanced industrial economies have long held competitive advantages across much of the rest of the value chain. This has been a missed opportunity for WA because the economic value of goods increases sharply as they proceed up the value chain. For WA to continue its remarkable growth story it must capture more economic value per unit mined as the basis of future jobs, prosperity and strategic advantages as a trading partner. 2.1 What is the New Energy market? The foundation element of the new energy market is lithium. This metal is now being used in many products but increasingly in batteries for transport and electricity (Figure 1 ).

Figure 1: Global Annual Lithium Demand Projection to 2025 1

Global Annual Lithium Demand Projection to 2025

1000 1250 1500 1750 2000 2250 2500

Others Medicine Polymers Air conditioning Metal Alloys Grease / Lubricants Glass / Ceramics EVs Utility Behind meter Portables

0 250 500 750

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Source: Future Smart Strategies

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