Battery storage and electric vehicles locally are set to receive a boost after a company secured an estimated AU$20 million investment from the Clean Energy Finance Corporation (CEFC).
This is the first of its kind to be invested in with the CEFC becoming a cornerstone investor in a US$100 million senior secured bond issued by Pilgangoora Operations Pty Ltd, a wholly-owned subsidiary of ASX-listed Pilbara Minerals Limited.
The bond will help to finance the development of the Pilgangoora lithium-tantalum project.
Through outlining further exciting ideas and projects it is hoped it may help to attract more investment in the mining project.
Global leader
Australia is set to become a global leader by aiding the uptake of lithium based technologies with projects such as this further cementing that fact, according to a press release by the CEFC today.
CEFC CEO Ian Learmonth said the CEFC investment was highly important to showing how the CEFC can help Australia transition to a low carbon economy and create a clean energy supply chain.
“Lithium is an essential part of the clean energy transition, particularly as we develop enhanced battery storage technologies that will allow us to increase the use of renewable energy, both for large-scale and small-scale projects,” Mr Learmonth said.
“Worldwide demand for lithium is growing, driven by the increasing uptake of electric vehicles that use lithium ion batteries, and by the growth in energy storage solutions requiring lithium supplies.”
A green energy money maker
While the products of the work are likely to end up in the Chinese market Pilbara Minerals Managing Director and CEO, Ken Brinsden says in the strategies defence,
“Construction of the mine is expected to generate around 300 jobs and we’re expecting mine commissioning to commence towards the beginning of next year. Concentrate will be exported from Port Hedland, predominantly to China under existing off-take agreements for processing into lithium carbonate and lithium hydroxide for a wide range of lithium products.”
With the CEFC having substantial experience in the Lithium Iron business it is something that they would look to invest in further in the future, with it being the CEFC’s fourth investment in WA.
