According to a report by Australian mining, the Western Australian (WA) Government has opened applications for its $50 million Lithium Industry Loan Facility, aiming to stabilize the state’s ailing lithium sector. Western Australia produces approximately 50% of the world’s lithium and supports over 11,000 local jobs. The facility provides interest-free loans of up to $15 million to eligible spodumene concentrate producers, offering critical support amid a significant decline in global lithium prices.
The initiative is part of a broader $150 million lithium support package announced by the WA Government. Premier Roger Cook emphasized the importance of safeguarding jobs and ensuring the resilience of the state’s lithium industry. “This facility will help our miners weather the current downturn and emerge stronger in the future,” Cook stated. Loans will remain interest-free until spodumene prices exceed USD $1,100 per tonne for two consecutive quarters or until June 30, 2026, whichever comes first. Companies must repay the loans within two years following the end of the interest-free period.
The announcement comes as Australian lithium export earnings fell by 69% year-on-year in the September quarter of 2024 to $1.2 billion, despite a 23% increase in export volumes. Lithium spodumene prices have dropped sharply from USD $6,000 per tonne in 2023 to an average of just USD $845 per tonne in late 2024. While the December 2024 Resources and Energy Quarterly forecasts a gradual recovery in lithium spodumene prices to USD $1,125 per tonne by 2026, weaker than expected electric vehicle (EV) sales remain a risk to the market. Australia’s lithium export earnings are projected to decline further from $9.9 billion in 2023-24 to $6.5 billion in 2025-26, revised down from an earlier forecast of $8.2 billion.
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