Vanadium miners will be afforded significant royalty relief with the Cook Government delivering a major election commitment which will support Western Australia’s resources industry and help the State’s economy remain the strongest in the nation.
From today, a 2.5 per cent royalty rate will apply to vanadium products in a move to incentivise production of the critical mineral in WA and encourage its emerging vanadium battery industry.
The new rate will support vanadium developers in WA, which has some of the world’s best vanadium deposits, as well as the current royalty rate of zero for the midstream production of vanadium electrolyte for the manufacturing of vanadium batteries.
The policy is consistent with the government’s plans to install Australia’s first locally built utility-scale vanadium battery in Kalgoorlie.
Vanadium battery technology will assist long-duration energy storage in WA as coal-fired power stations are retired and the share of renewables significantly increases in the State’s main energy grid.
The 50-megawatt, 10-hour WA-made vanadium flow battery in Kalgoorlie will create 150 jobs during construction and be operational by 2029.
The government will also work with the private sector to develop a local vanadium electrolyte production and battery assembly industry in Kalgoorlie. This in turn will stimulate opportunities for downstream processing and exports.
As stated by Mines and Petroleum Minister David Michael:
“I am pleased to provide clarity around State Government royalties for Western Australia’s emerging vanadium miners and nascent vanadium battery industry.
“This move will give industry players the financial confidence and certainty to make the significant investments required to see their projects come to fruition.
“This certainty is something the industry has requested and the Cook Government has agreed and delivered.”
As stated by Energy and Decarbonisation Minister Amber-Jade Sanderson:
“This royalty relief will help the Cook Government deliver a WA-made vanadium battery in Kalgoorlie, creating jobs, strengthening regional power reliability and supporting the establishment of a new industry for Western Australia.
“Installing a Vanadium Battery Energy Storage System is a major election commitment under our Made in WA plan, to diversify the economy, enable Western Australia to become a renewable energy powerhouse, and to make more things here.
“Expressions of interest remain open. I want local businesses to play a role in delivering the project, working with industry to determine practical and achievable local content.”
As stated by Kalgoorlie MLA Ali Kent:
“It is pleasing to be part of a government that is committed to establishing a local vanadium industry in WA and a utility-scale vanadium battery in Kalgoorlie.
“This royalty relief is a win for aspiring vanadium producers and companies eyeing opportunities in electrolyte production and battery assembly in Kalgoorlie.
“I look forward to seeing the vanadium battery project progress and I am excited by the jobs and economic opportunities it will generate in Kalgoorlie.”
