Tianqi Lithium Australia aims to ensure long-term viability of its troubled Kwinana refinery despite partner IGO’s doubts and lithium slump.
Tianqi Lithium Energy Australia has reaffirmed its commitment to securing the long-term sustainability of its Kwinana lithium hydroxide refinery, despite the facility currently operating at a loss. The joint venture, which includes Chinese company Tianqi Lithium holding a 51% stake and Australia’s IGO Limited owning the remaining 49%, emphasized on Tuesday that maintaining the plant’s viability remains a strategic priority.
The announcement follows recent remarks from IGO expressing serious doubts about the refinery's future. Last week, IGO revealed that it was reassessing its involvement in the Kwinana operation, citing a lack of confidence in the potential for significant operational improvements. These comments raised industry concerns about the future direction of the refinery, which has faced several hurdles since it began production.
In response to these concerns, Tianqi Lithium Energy Australia stated it is actively working on a series of measures aimed at enhancing the plant's performance. These include optimizing production processes, reducing operating costs, and boosting overall efficiency and output. The joint venture underscored that it is not deterred by short-term challenges and remains focused on the refinery's role in the broader clean energy transition.
The Kwinana plant holds the distinction of being the first facility in Australia built to produce battery-grade lithium hydroxide, a key component in electric vehicle (EV) batteries. However, since becoming operational, the refinery has struggled with a range of technical and operational problems that have hindered output and delayed full-scale production. Compounding these issues is a significant decline in global lithium prices, which has placed further pressure on the economic viability of the project.
Despite these setbacks, Tianqi Lithium Energy Australia stressed that it views the Kwinana refinery as a critical asset in its long-term strategy to support the global shift toward electrification and renewable energy. The company is continuing efforts to stabilize the facility’s performance and remains committed to overcoming current inefficiencies.
The joint venture sees the challenges as part of the natural growing pains associated with pioneering new infrastructure in the lithium refining sector. It noted that such projects often face startup hurdles before reaching optimal performance levels. Both Tianqi and IGO have previously invested heavily in the venture, reflecting their initial confidence in Australia’s potential as a key player in the lithium battery supply chain.
Going forward, the company’s focus will remain on technological improvements, cost management, and strategic reassessments to enhance the Kwinana refinery's position in the global market. Whether IGO continues to support the project remains uncertain, but for now, the majority partner Tianqi Lithium appears resolute in steering the refinery toward long-term viability.
