[ferro-alloys.com]An influential mining lobby has urged the McGowan Government to grasp the “once-in-a-generation” chance to make batteries in WA, saying it could deliver huge economic benefits to the State.

In a submission to a parliamentary inquiry, the Association of Mining and Exploration Companies said WA had natural advantages in lithium ion battery manufacturing and needed to exploit them.

Mines Minister Bill Johnston said there was “no question” WA had a finite chance to get a share of the lithium battery market but it was imperative to have a clear plan about how to build the industry.

AMEC said the global trade in lithium batteries was predicted to soar from $165 billion to an eye-watering $2 trillion over the next eight years and WA was “uniquely” placed to grab a big share.

It said 60 per cent of the world’s lithium supply was mined in WA, while “all of the other minerals necessary to domestically manufacture batteries” were found here.

On top of this, AMEC said the technological and scientific requirements of the industry meant Australia’s high labour costs were less relevant, and the quality of locally mined ores such as spodumene meant they were much cheaper to convert into lithium.

While AMEC said WA was not yet in a position to make batteries because it would have to import many of the components, foreign players could be attracted to the State to carry out the final, higher value stages of the manufacturing process.

The call comes amid plans for a multibillion-dollar splurge on several lithium processing plants in WA, including in Kwinana. But Perth-based AMEC noted there was intense competition from governments around the world to attract lithium battery manufacturers and WA only had a brief opportunity to capitalise on its advantages.

“Australia risks ceding its substantial comparative advantages to other countries which are already focused on facilitating the growth of this industry in their countries,” AMEC chief executive Warren Pearce said.

“There is roughly a two-year window before the value chain is solidified.

“Without government and industry collaboration, Australia is estimated to capture $10 billion of the total value in the next eight years.

“However, if one more step was taken down the value chain into electro-chemical processing, by 2025 Australia would have a share of a further $297 billion.”

Mr Johnston, who heads a State task force investigating ways to develop an energy minerals market, said the Government was limited in what inducements it could offer companies because company tax and research and development concessions were a Federal matter.

But he did not rule out the prospect of the State providing assistance via water and power prices, two key inputs for energy mineral processing.

• [Editor:王可]