Pilbara Minerals and Calix Restart WA Lithium Phosphate Project with Government Backing

Pilbara Minerals

Mid-Stream Plant to Strengthen Australia’s Downstream Lithium Supply Chain by Late 2025

Pilbara Minerals and Calix have resumed development of their mid-stream renewable lithium phosphate demonstration plant in Western Australia, following a major funding boost from the state government. The project, paused in October 2024 due to funding constraints, restarted after a A$15 million (US$9.4 million) grant was awarded in December.

Now 75% complete, the facility will produce 3,000 tonnes per year (t/yr) of lithium phosphate, using spodumene feedstock from Pilbara’s Pilgangoora lithium mine. Commissioning is targeted between October and December 2025, with the project serving as a key step in advancing Australia’s mid-stream lithium processing capabilities.

Strategic Incentives Set Stage for Long-Term Lithium Refining Growth

This mid-stream facility will qualify for new tax incentives, offering 10% rebates on processing and refining costs for a ten-year period starting in 2027. These incentives, legislated by Australia’s federal government, aim to increase domestic value-added production in critical minerals.

Additionally, the Western Australian government has granted two-year waivers on administrative and port fees, further lowering the project's financial barriers. These measures reflect coordinated efforts by state and federal authorities to stimulate downstream investment amid fluctuating global lithium prices.

Pilbara Expands Global Processing Footprint Amid Market Volatility

The joint venture aligns with Pilbara Minerals broader strategy to expand its downstream presence. The company already operates a lithium hydroxide plant in Gwangyang, South Korea, in partnership with POSCO, one of the world's largest steel producers.

By partnering with Calix, a leader in low-emission calcination technology, Pilbara aims to produce battery-grade lithium chemicals with lower carbon intensity. The demonstration project will not only support Australia's domestic battery supply chain but could serve as a template for future commercial-scale operations.