Australian lithium producer Pilbara Minerals has secured a 10-year debt facility from the Federal Government for the expansion of its Pilgangoora operation in Western Australia.

The debt facility has been through the Export Finance Australia (EFA) and Northern Australia Infrastructure Facility (NAIF) agencies, with EFA having approved finance of the US$ equivalent of $125 million, whilst NAIF has agreed to provide the same amount.

Pilbara Minerals managing director Dale Henderson says the funding demonstrates that the Federal Government is willing to support businesses to play a key role in supplying critical minerals that will aid the global transition towards renewable energy sources.

The money will support the construction of the P680 project expansion to the Pilgan Plant, so that it can deliver an additional 100,000tpa of spodumene concentrate production at an estimated capital cost of $103 million.

Work will also be undertaken on a 5mtpa crushing and ore sorting facility to replace the existing contracted crushing facility. 

“We look forward to continuing to work with the Australian Government as we pursue our growth and diversification strategy to further realise our ambition to become a fully integrated, sustainable battery materials supplier,” Mr Henderson said.