In one joint announcement Through Mines and Petroleum Minister David Michael and Energy and Decarbonisation Minister Amber-Jade Sanderson, the government said the new tariff aims to boost vanadium production in WA and encourage the emerging vanadium battery industry.
The proposal to introduce a royalty rate follows an election pledge from the Cook government.
The move also ties in with plans to develop Australia’s first locally built utility-scale vanadium flow battery, which is expected to be installed in Kalgoorlie.
The 50-megawatt, 10-hour vanadium flow battery made by WA, in Kalgoorlie, called the Vanadium Battery Energy Storage System (VBESS), will be the largest of its kind in Australia.
It is expected to create 150 jobs during construction and aims to reach operational status by 2029.
“Installing a vanadium battery energy storage system is a key election commitment under our Made in WA plan, to diversify the economy, enable Western Australia to become a renewable energy powerhouse and make more things here,” Sanderson said.
A local vanadium electrolyte production and battery assembly industry in Kalgoorlie is also part of the government’s plan, which it wants to build with the private sector to boost downstream processing and export opportunities.
The Association of Mining and Exploration Companies (AMEC) welcomed the revised royalty in a statementsaying this will provide much-needed support for developers and investors at a crucial point for the emerging sector.
“With Western Australia home to some of the most potential vanadium resources in the world, this important mineral underpins long-term energy storage and supports broader decarbonisation and grid stability goals,” said AMEC CEO Warren Pearce.
“Importantly, today’s announcement also maintains a zero tariff on vanadium
the production of electrolytes, strengthening the opportunity to move beyond raw material extraction and into higher value-added supply chains and batteries, especially in regional centers such as Kalgoorlie.”
The government said expressions of interest remain open, with local businesses invited to participate in the project.
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Securities Disclosure: I, Gabrielle de la Cruz, have no direct investment interest in any company mentioned in this article.
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