As lithium prices surge, US chemicals company Albemarle is considering a major expansion of its refinery 200 kilometres south of Perth, with plans for a 1,000-bed capacity workers' village.
Albemarle is weeks away from first production of battery-grade lithium hydroxide at its Kemerton plant, just north of Bunbury.
It has announced plans for a workers village in the nearby town of Binningup as it awaits a final investment decision on an expansion.
The Kemerton-based refinery was originally set to produce 100,000 tonnes of lithium hydroxide each year, but the output projection was halved in 2020 following a drop in lithium prices.
An expansion is back on the cards as the price index for lithium hydroxide increased more than 400 per cent over the past year.
Site director Daniel O'Shea said the company was looking at building a third and fourth processing train
"We're at an exciting time for Kemerton and the lithium industry," he said.
"We're actually looking at the next wave of growth investments that Albemarle can undertake, and included in that is trains three and four at site," he said.
"We haven't made a final investment decision as such, but we are certainly down the track."
Lessons learned
Mr O'Shea said the company had experienced challenges in finding accommodation for the construction workforce while building the first stages of the Kemerton plant.
"Given the lack of accommodation availability in the short to medium term in the region, we're actually looking at our own solution to accommodate that future workforce for construction activities," he said.
The company is looking to lease land from local earthmoving company B and J Catalano, and a social impact assessment is being carried out.
"We're looking to see what end use, after the need for the construction, it could be. Whether it be aged care or other that this could fulfil," Mr O'Shea said.
Community uncertain
Residents are pushing to ensure the small seaside community sees long term benefits from the project, expressing concern that a large influx of workers will put further strain on the town.
Binningup Caravan Park owner Jason Rule attended a consultation session yesterday.
He said the community was uncertain.
"No-one really knows what we're going to end up with at the end of it all, and the effects it's going to have on the lifestyle on the people that live in the town," Mr Rule said.
Harvey shire president Paul Gillett said discussions had been held with the company over the plan for the workers' village.
"We'd like to see this be a win-win, not only for Albemarle, but for the community and the shire," he said.
