The Albanese Labor Government is helping secure Australia in the global renewable energy supply chain, with the National Reconstruction Fund (NRF) today announcing a $50 million equity investment in Liontown Resources as part of a $266 million institutional placement.
Today's $50 million announcement will support the ramp-up and underground transition of the Kathleen Valley Lithium Operation.
Lithium is a critical component in the batteries that go into electric cars and other high-tech devices such as phones and watches. Liontown is a key supplier of lithium to some of the world's leading vehicle and battery manufacturers, including Tesla, Ford, and LG Energy Solution.
The Albanese Government is determined to support Australia's lithium sector as part of global efforts to reduce emissions and capture the opportunities of a move to net zero. Global lithium consumption has tripled since 2016 due to the growth of the EV market and around 87 per cent of the world's lithium is used for production of EV batteries.
Liontown, which employs over 300 people, is paving the way for downstream lithium processing in Australia-enabling the nation to capture a greater share of the global lithium value chain, creating good quality jobs in the process.
The NRF's $50 million equity investment in Liontown underscores their commitment to advancing Australia's mineral refining capabilities and strengthen critical supply chains - a key example of the Albanese Government's Future Made in Australia agenda.
The NRF is critical to the Albanese Government's plan to build a more capable, productive, and resilient economy. By providing finance through debt, equity, and guarantees to high-value projects, the Fund aims to diversify Australia's economy, strengthen manufacturing, and support innovation.
This investment demonstrates the importance of public and private investment working together to meet the challenges facing Australia, as well as in grasping the opportunities.
Quotes attributed to Minister for Industry, Innovation & Minister for Science Tim Ayres:
"I am delighted by today's announcement, and to see the National Reconstruction Fund backing the critical minerals supply chain.
"With Australia's critical and abundant natural endowments, like lithium, and skilled workers, Australia is well positioned to strengthen supply chains and become an indispensable part of the low carbon global economy.
"This is what Future Made in Australia is all about. And it's about using public sector investment to crowd in private investment to make the most of this opportunity.
"Together we will build a stronger, more diversified and more resilient economy, with good blue-collar jobs."
Quotes attributed to Minister for Resources, Madeleine King:
"I welcome the NRF's decision to invest in the Kathleen Valley lithium mine as it is another example of how the Albanese Government is securing critical minerals supply chains.
"The project is also a leader in renewably powered mining and has installed the largest wind turbines on the continent.
"Liontown at Kathleen Valley is a world leading example of sustainable lithium spodumene mining that Australians should be proud to be a part of through this NRF contribution.
"To meet our net zero targets we will need more mining to build the solar panels, batteries and wind farms we need to reduce emissions."
Minister King recently officially opened Liontown's Kathleeen Valley Lithium project, in Western Australia's northern Goldfields region.
She said the project had the support of and shared an important relationship with local traditional owners, the Tjiwarl People.
