Albemarle looks to fix worker accommodation crisis as it eyes Kemerton plant expansion

US chemicals giant Albemarle has identified a site near Binningup for a 2000-worker village as it eyes a $US1 billion-plus expansion of its lithium hydroxide plant at Kemerton that would double its capacity.

The proposed village, on a 144ha rural-zoned site on Binningup Road, aims to solve an accommodation problem the company experienced trying to house the 1800-strong construction workforce required for trains one and two of the plant.

Albemarle is in the final stages of commissioning train 1 with first production expected by the end of May and first sales in the second half while train 2 is expected to begin production later this year with first sales in 2023.

The company and its 40 per cent joint venture partner Mineral Resources are completing a feasibility study for the construction of trains 3 and 4 with a final investment decision expected late this year or early next year.

Each train has a 25,000tpa capacity, meaning the plant’s output could be as high as 100,000tpa with all four trains in operation.

The proposed investment comes as lithium prices have surged in the past 12 months on the back of supply constraints and growing demand for the energy metal in electric vehicle batteries.

Plans for a dedicated village to house its construction workforce come after Albemarle struggled to find appropriate lodging in the region for its workforce for trains 1 and 2, with various hotels, motels, share-houses and caravan parks used across a range of locations including Preston Beach.

Albemarle’s Kemerton plant site director Dan O’Shea said given the lack of accommodation availability, the company was looking at its own solution to accommodate a future workforce to lessen the burden on local accommodation.

“We remain committed to recruiting workers, for construction and operations, from the local area where possible,” he said.

“In fact, more than 83 per cent of the Kemerton’s operations team are residents from the local area.

“Along with significant economic and social investment including contributions to local communities, Albemarle looks forward to a long and sustainable future in the South West region.”

Albemarle plans to develop its worker village in stages and is seeking local community feedback on its plans with planned consultation sessions in Binningup on Sunday and Monday.

The worker village proposal comes after MinRes last month flagged a big expansion of lithium concentrate production at its Wodgina mine in the Pilbara, which also operates as a joint venture with Albemarle, and at its Mt Marion operation near Kalgoorlie.

This week the Chris Ellison-led company announced it had produced first lithium concentrate from Wodgina following the restart of the asset flagged in October last year.