The Western Australian Government says new royalty settings for vanadium are intended to support regional jobs, emerging industries and downstream manufacturing, as it moves to encourage investment in the critical minerals and energy storage sectors.
From 4 February, a royalty rate of 2.5 per cent will apply to all vanadium products, a change the Cook Government says will provide greater certainty for miners while supporting the development of a local vanadium battery manufacturing supply chain in Western Australia.
In a news release, the government said the measure delivers on an election commitment and is designed to incentivise vanadium production, with WA holding some of the world’s largest known deposits of the mineral.
The new rate sits alongside the existing zero royalty rate for midstream production of vanadium electrolyte used in the manufacturing of vanadium batteries.
Mines and Petroleum Minister David Michael said the policy was aimed at giving industry clarity. “I am pleased to provide clarity around State Government royalties for Western Australia’s emerging vanadium miners and nascent vanadium battery industry,” he said.
“This move will give industry players the financial confidence and certainty to make the significant investments required to see their projects come to fruition.”
The royalty relief aligns with government plans to install Australia’s first locally built, utility-scale vanadium battery in Kalgoorlie.
The proposed 50-megawatt, 10-hour battery is expected to create around 150 jobs during construction and is scheduled to be operational by 2029.
Energy and Decarbonisation Minister Amber-Jade Sanderson said the initiative would support both energy reliability and local industry.
“This royalty relief will help the Cook Government deliver a WA-made vanadium battery in Kalgoorlie, creating jobs, strengthening regional power reliability and supporting the establishment of a new industry for Western Australia,” she said.
Sanderson said the project formed part of the government’s Made in WA plan to diversify the economy and expand local manufacturing capability, noting that expressions of interest for the battery project remain open.
The government also said it will work with the private sector to develop local vanadium electrolyte production and battery assembly in Kalgoorlie, with the aim of stimulating downstream processing and export opportunities.
Kalgoorlie MLA Ali Kent said the policy was expected to benefit the region. “This royalty relief is a win for aspiring vanadium producers and companies eyeing opportunities in electrolyte production and battery assembly in Kalgoorlie,” she said, adding that the project could deliver long-term economic opportunities for the community.
