Covalent steps toward refinery

Wesfarmers-backed Covalent Lithium has signed a lease for its planned Kwinana refinery project with the state government.

In a press release today, the government said Covalent had entered a long-term lease for 40 hectares in Kwinana, with the lease commencing today.

Covalent is owned 50 per cent by Wesfamers and 50 per cent by Chilean business SQM.

The refinery would be the third in Western Australia and produce 50,000 tonnes of lithium hydroxide annually.

That would support production of batteries for about 1 million electric vehicles a year.

In May, The Environmental Protection Authority recommended the Covalent refinery should proceed, after Wesfamers approved the Mt Holland mine to supply the refinery in February.

The implied cost of the refinery and mine was $1.9 billion, Business News reported.

"The Kwinana [strategic industrial area] plays a vital role in supporting WA's economy as it is a key part of the state's premier heavy industrial corridor,” State Development Minister Roger Cook said. 

“The Kwinana SIA is already home to major chemical, energy and resource-based processing operations.

"The investment by Covalent Lithium reinforces the importance of the government's commitment to establishing a globally advanced manufacturing hub for the industrial corridor between Henderson and Rockingham.

“The WA government is committed to continuing to deliver serviced heavy industrial land to attract investment and create new jobs in this area and in other heavy industrial areas across the state."