PERTH (miningweekly.com) – Lithium developer Covalent Lithium has entered into a long-term lease for a 40-ha site in the Kwinana Strategic Industrial Area (SIA) where it will start construction of a lithium refinery.

Covalent, which is a joint venture between ASX-listed Wesfarmers and Chilean company Sociedad Química y Minera de Chile S.A. (SQM), in June this year received Environmental Protection Authority approval for the refinery, which forms part of the integrated Mount Holland lithium project. 

The project, which is expected to create 1 000 construction and 350 operational jobs, involves the construction and operation of a spodumene mine and concentrator near Mount Holland in Western Australia.  

The refinery operations are expected to have an 85% recovery of the lithium contained in the spodumene concentrate sourced from Covalent’s Mount Holland mining and concentrator operations, which is expected to produce more than 340 000 t/y of concentrate over a mine life of 40 years.

From here, Covalent would have the capacity to produce approximately 45 000 t/y of battery quality lithium hydroxide.

The Covalent Lithium refinery is now one of three lithium refineries under construction in Western Australia that will pave the way for further value-adding activities, including pre-cursor cathode manufacturing which is a key priority of the Western Australian government's Future Battery Industry Strategy.

"The Kwinana SIA plays a vital role in supporting Western Australia's economy as it is a key part of the State's premier heavy industrial corridor. The Kwinana SIA is already home to major chemical, energy and resource-based processing operations,” said Minister for State Development, Jobs and Trade Roger Cook.

"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.”