The resources minister highlighted concerns about the impact of the renewable push on the mining industry, particularly on the prices of lithium and nickel, which are critical for manufacturing electric vehicles batteries. Both have seen a significant drop in prices in the past year, which has led the mining companies to raise concerns.
Mineral Resources Minister Madeleine King explained that the lithium and nickel markets fluctuate quickly and there are ongoing discussions with industry members regarding any concerns. The minister will be meeting with the miners to address these issues and explore ways to support the mining industry.
Recent mining projects have suffered due to the decline in lithium prices, as billionaire Andrew Forrest’s private company, Wyloo Metals, announced the closing of its nickel operation in Western Australia. Additionally, BHP and Liontown Resources have faced similar challenges, leading to substantial disruptions in the mining industry.
Minister King stated that the federal government aims to address these concerns by consulting with industry and mining experts, considering options other than direct subsidies to support the sector. The impact of mine closures on the transition to renewables was also highlighted, with Minister King stressing the fundamental requirement of nickel for renewable industries.
Ms. King expressed that the demand for electric vehicles is still increasing and discussions on how to support ethical sourcing of nickel and lithium are needed to ensure the products are made with high ethical standards. She also highlighted the importance of considering the working conditions and environmental impact in nickel sourcing.