The Western Australian Government has announced royalty relief for vanadium miners in Western Australia, a move aimed at supporting regional jobs, encouraging investment and accelerating the development of the State’s emerging vanadium battery industry.
From today, a 2.5 per cent royalty rate will apply to all vanadium products, delivering on a major election commitment and providing certainty for developers seeking to advance projects in Western Australia.
The new rate applies alongside an existing zero royalty for the midstream production of vanadium electrolyte used in the manufacture of vanadium batteries. The government said the policy would incentivise vanadium production and help maintain Western Australia’s position as the strongest economy in the nation.
Western Australia is home to some of the world’s best vanadium deposits, and the royalty change is intended to unlock new projects while supporting downstream processing and advanced manufacturing opportunities.
The announcement aligns with the government’s plan to install Australia’s first locally built utility-scale vanadium battery in Kalgoorlie. The 50-megawatt, 10-hour vanadium flow battery is expected to create 150 jobs during construction and be operational by 2029.
Vanadium battery technology is expected to play a key role in providing long-duration energy storage as coal-fired power stations are retired and renewable generation increases across the State’s main electricity grid.
The government has also committed to working with the private sector to develop a local vanadium electrolyte production and battery assembly industry in Kalgoorlie, supporting downstream processing, exports and long-term regional employment.
Mines and petroleum minister David Michael said the royalty relief would give industry greater confidence to invest.
“I am pleased to provide clarity around State Government royalties for Western Australia’s emerging vanadium miners and nascent vanadium battery industry,” Mr Michael 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.
“This certainty is something the industry has requested and the Cook Government has agreed and delivered.”
Energy and decarbonisation minister Amber-Jade Sanderson said the policy would help deliver the Kalgoorlie battery project and support economic diversification.
“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,” Ms Sanderson said.
“Installing a Vanadium Battery Energy Storage System is a major election commitment under our Made in WA plan, to diversify the economy, enable Western Australia to become a renewable energy powerhouse, and to make more things here.”
Kalgoorlie MLA Ali Kent said the announcement was a positive step for the region.
“This royalty relief is a win for aspiring vanadium producers and companies eyeing opportunities in electrolyte production and battery assembly in Kalgoorlie,” Ms Kent said.
“I look forward to seeing the vanadium battery project progress and I am excited by the jobs and economic opportunities it will generate in Kalgoorlie.”
