Amid projections of a "bright" future for lithium, more companies are looking to expand their Western Australian operations — including one of the world's biggest lithium companies operating out of the state's South West.
US lithium company Albemarle announced on Wednesday it would build two extra trains at its Kemerton site, north of Bunbury, to process the valuable metal, which is used in the production of batteries.
The expansion would double the amount of lithium hydroxide produced at Kemerton to 100,000 tonnes annually to support 2.4 million electric vehicles a year.
The Kemerton plant came online a year ago as a scaled-back project from what was originally flagged.
However, Albemarle CEO Kent Masters said the future was looking good.
"Our decision to expand was driven by our confidence in future demand and allows us to offer customers additional supply from Greenbushes, well known as one of the world's best lithium mines" he said.
The Kemerton site is not the only WA lithium venture to be expanded.
Construction is underway to grow the state's largest lithium mine in Greenbushes, Wesfarmers is assessing expansion opportunities at its Mt Holland lithium project, and Pilbara Minerals made the decision last month to increase production capacity at its Pilgangoora Project near Port Hedland.
Resources analyst Tim Treadgold said while lithium prices had fallen severely over recent months, the tide had turned.
"Every man and his dog is getting into lithium," Mr Treadgold said.
"You get a very, very bright long-term future, which is being driven by the energy transition out of fossil fuels and into renewables.
"Sitting at the heart of that is lithium, [which is] being driven by government demands that fossil fuel use is reduced and battery use is increased.
"That is a very, very powerful long-term incentive for lithium producers."
'There will be victims; there will be winners'
Over the years, WA's lithium industry has battled against a slower-than-expected uptake of electric vehicles and a challenging global market, which led to several WA lithium projects being canned or put on hold.
Mr Treadgold warned not all players would make it in Western Australia.
"I'm absolutely certain that we'll flood the market again" he said.
"They are angling for a way to corner their section of the market. There will be victims, some will go broke … And there will be big-time winners."
Region ready for more
Construction is set to begin on the Albemarle expansion immediately and it is understood the first product will roll off the new trains in 2026.
The project is expected to create about 1,000 construction jobs.
The company is actively working to set up workers' accommodation in nearby Australind and a plan to build a workers' camp in Binningup is still in the works despite backlash from the community.
Shire of Harvey President Paul Gillett said the region was ready for the expansion and keen to play a greater role in the production of batteries into the future.
"I think we're probably the most desirable place in the South West," he said.
"We certainly have a lot to offer. We've got the natural resources there. It seems fitting that we go from start to finish."
Union watches on after safety concerns
During the initial build and commissioning of the Kemerton refinery, the Australian Manufacturing Workers' Union (AMWU) raised allegations about an unsafe work environment, after a handful of workers were taken to hospital as a precaution after potentially being exposed to harmful gas.
Worksafe ordered the lithium company to install safety barriers to protect construction workers.
AMWU state secretary Steve McCartney said while he welcomed the expansion going ahead he hoped the company had learnt from its mistakes.
"They've now got shields and extractors, etcetera, to ensure that area is safe," he said.
"So hopefully with those guidelines that have been produced to fix problems … we won't have the same mistakes. That's what we're hoping is going to happen.
"Our members haven't raised any issues since, but they've raised a lot of concern about this job. Is this job going to be a safer job than the last round?"
