Wesfarmers and SQM have jointly approved the final investment decision for the Mt Holland lithium project, aiming to increase production capacity for sustainable lithium hydroxide amid rising demand in the electric vehicle market.

Information on the Target

The Mt Holland lithium project is a significant development in the quest for sustainable energy solutions. Owned by Covalent Lithium, a joint venture between Wesfarmers Limited and Sociedad Quimica y Minera de Chile S.A. (SQM), this project aims to produce high-grade lithium hydroxide, essential for the growing electric vehicle market. The project has recently received joint approval for the final investment decision (FID), marking a crucial step forward in its development.

The updated definitive feasibility study (UDFS) confirms the project's engineering design, capital and operating costs, and enhances production capacity, increasing lithium hydroxide output from 45,000 to approximately 50,000 tonnes per annum. Additionally, the UDFS allows for future expansion options, ensuring the project can adapt to the increasing demand for lithium in battery manufacturing.

Industry Overview in Australia

Australia has emerged as a leading player in the lithium market, significantly contributing to the global supply of the mineral used in electric vehicle batteries. The country possesses vast lithium reserves and be