China-Australia lithium tie-up highlights symbiotic bond, ‘mutual respect’ amid green energy drive

Chengdu-based Tianqi Lithium and Australian company IGO established a US$1.4 billion joint venture in December 2020

Tianqi Lithium said in May that it had produced Australia’s first battery-grade lithium hydroxide, which is a key material for making lithium batteries for electric vehicles

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The Kwinana Lithium hydroxide Processing Plant in the Kwinana Industrial Area in Australia. Photo: Tianqi Lithium

Published: 5:00am, 2 Jan 2023Updated: 3:53pm, 3 Jan 2023

China and Australia mark the 50th anniversary of diplomatic and trade ties in December. Post reporter Kandy Wong recently attended the 12th Australia-China Youth Dialogue, and her four-part series looks at various aspects of the relationship between Beijing and Canberra. In part four, she looks at the role lithium mining plays.

Located 45 minutes from the centre of Perth in Western Australia, the 120 sq km (46 square mile) Kwinana Industrial Area is home to a China-Australia joint venture that reflects the interdependent nature of both countries.

In May, Tianqi Lithium announced that it had succeeded in producing Australia’s first battery-grade lithium hydroxide, which is a key material for making lithium batteries for electric vehicles, at its Kwinana plant.

The joint venture was established in December 2020 with US$1.4 billion in capital via an agreement between the Chengdu-based Tianqi Lithium and Australian company IGO, with the Kwinana plant playing a pivotal role in manufacturing lithium hydroxide monohydrate from spodumene.

The spodumene is sourced from a mine in Greenbushes, which is located 250km to the south of Kwinana, with the finished products shipped from Western Australia’s Port of Fremantle.

According to Statistica, Australia produces 55 per cent of the world’s lithium, while China bought over 90 per cent of the country’s lithium this year based on figures from the Australian Bureau of Statistics.

SCMP Series

Spotlight on China-Australia relations 50 years on

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