Australian government backs lithium with Pilbara Minerals investment

Australian government backs lithium with Pilbara Minerals investment

The Australian government will make its first investment into a lithium project as it looks to secure power stability in a market where renewable energy is growing in dominance.

The government announced a US$15 million investment into Pilbara Minerals’ Pilgangoora project in Western Australia which will produce lithium concentrate, a key component in lithium-ion batteries which power electric vehicles and clean energy storage units.

Josh Frydenberg, Environment and Energy Minister, said it was the government’s first investment of its type and will help to supply Australia’s growing renewable energy market.

“Lithium is a vital component used in battery storage, which helps to support Australia’s increasing use of renewable energy,” the minister said in a statement.

The investment comes from the government’s Clean Energy Finance Corporation as a part of Pilbara Minerals’ recent AUS$132 million bond issue.

Construction on the project is expected to commence in early 2018.

@RGNonline