IGO announces plans for a battery material facility in WA

IGO Limited has announced in an ASX release that land in Kwinana has been secured from the Western Australian Government for its proposed Integrated Battery Material Facility (IBM Facility). The company says this marks an important milestone in delivering IGO’s strategy to be vertically integrated into the battery supply chain.

IGO, in conjunction with Wyloo Metals, is working towards making a financial investment decision on the development of the project, which involves integrating a downstream nickel refinery with a plant producing high-value nickel-dominant precursor cathode active material (PCAM) for the battery supply chain. The proposed project would combine IGO’s nickel-refining technology with PCAM production expertise via a low-cost and low-carbon process. The project would represent the first commercial production of PCAM in Australia.

The proposed IBM Facility would be constructed in the Kwinana-Rockingham Strategic Industrial Area on approximately 30 hectares of vacant industrial land leased from the WA Government. The land secured for the proposed IBM Facility is located adjacent to the Kwinana Lithium Hydroxide Refinery which is owned by Tianqi Lithium Energy Australia (TLEA), a joint venture between IGO and Tianqi Lithium Corporation.

Key works required before a final investment decision can be made include engaging a partner with experience in PCAM production, delivery of a feasibility study in mid-2024, environmental permits and approvals, broad stakeholder engagement and the achievement of key commercial outcomes. IGO and Wyloo are currently advancing discussions with a global battery chemical manufacturer that has indicated strong interest in partnering in the project.

“Australia is already playing an important role in the global supply of critical minerals required as the world transitions to clean energy,” said IGO’s Acting CEO, Matt Dusci. “We need to continue to expand our participation throughout the battery supply chain, beyond just the mining of key raw minerals, in order to capture a greater share of the value. We believe the area where Australia can be most competitive is in mid-stream battery chemical processing.

“We are excited about securing this site at Kwinana — a pivotal step in our ambitions to be better integrated into the battery supply chain. We strongly believe that by bringing the right partners together, we will deliver a fully optimised nickel supply chain delivering low-cost, low-carbon, responsibly produced battery chemicals for the global battery and electric vehicle industry, to be delivered through an integrated battery material facility here in Western Australia,” Dusci said.

Image caption: Conceptual render of proposed integrated battery material facility at Kwinana. Source: IGO Limited.