Tianqi Lithium Energy Australia (TLEA) – a joint venture between Tianqi Lithium and IGO – will lay off a dozen workers at its Kwinana lithium hydroxide refinery because of high lithium concentrate costs and low lithium hydroxide prices.
“We continuously review our organisational structures to make sure we have the right skills and capabilities in place while we operate in a challenging global lithium market,” a TLEA spokesperson told Lithos on 4 November.
“We are consulting directly with affected employees and, out of respect for their privacy, will not comment on individual employment matters,” they said.
TLEA ran its Kwinana refinery at a A$65 million loss in July-September, down from a A$88 million loss in April-June, IGO told investors on 29 October. It wrote down the refinery’s value by A$32 million over the quarter, IGO said.
TLEA’s Kwinana conversion costs averaged A$33,677/tonne in July-September, down from A$40,670/tonne in April-June. But it sold lithium hydroxide for $17,676/tonne (A$25,233/tonne) over the quarter.
“[The Western Australian Government understands] that companies have to manage their operational and organisational requirements,” a Government spokesperson told Lithos.
“We have a range of measures in place to support impacted workers into other jobs or to upskill and reskill so they can take advantage of new opportunities,” they said. “All workers can access free career support by calling their nearest Jobs and Skills Centre,” they added.
The WA Government has supported lithium producers through its Lithium Industry Support Package since the start of 2025. It waived a range of administrative and port fees to help TLEA address lithium price volatility, and has funded the scheme until the end of 2027.
The Federal Government will also allow TLEA to claim a 10% rebate on lithium hydroxide processing costs from July 2027, through its Critical Mineral Production Tax Incentive (CMPTI) scheme.
“[The CMPTI is] not a subsidy at all. It’s a taxation incentive that builds upon the investment companies already make,” Resources Minister Madeleine King told News24 on 28 October.
“It’s not a subsidy at all. It’s a taxation incentive that builds upon the investment companies already make,” King said. “It’s not a hand‑out or a grant; it’s an incentive to drive that kind of processing and a future made here in Australia,” she added.
By Avinash Govind