Western Australian Premier Roger Cook on Friday pledged to cut royalties on vanadium products as part of a strategy to position Kalgoorlie-Boulder as Western Australia’s hub for vanadium battery manufacturing and storage.

Under the commitment, he said a re-elected Labor government would halve the royalty on vanadium products from 5% to 2.5%, while vanadium electrolyte would remain exempt from royalties.

“These policy settings to cut the royalty rate are about ensuring we can support a full supply chain from WA mines to WA-made batteries, powering WA homes and businesses,” Cook stated.

WA Labor has already committed A$150-million towards an Australia-first vanadium battery project, including the installation of a 50 MW, 10-hour WA-made vanadium flow battery in Kalgoorlie. This initiative is expected to reinforce the Goldfields’ energy system and generate around 150 local jobs.

The Association of Mining and Exploration Companies (Amec) has welcomed the announcement, with CEO Warren Pearce noting the significance of government backing for the emerging sector.

“To see the government invest in this emerging sector is a vote of confidence on what it has the potential to deliver - a cleaner, efficient and long-lasting energy storage option,” Pearce said.

He also underscored the importance of the royalty reduction, explaining that "this important royalty change was needed when it became obvious that new vanadium products, such as vanadium pentoxide, weren’t properly captured by the state’s royalty framework".

Amec has been advocating for policy changes since 2021, working alongside industry stakeholders and government officials.

With Western Australia home to one of the world’s largest vanadium deposits near Meekatharra, industry leaders see the policy shift as an opportunity to strengthen local production and attract downstream investment. Pearce said that Kalgoorlie had the potential to become “the vanadium hub of Western Australia, if not Australia", driving economic growth and securing the state’s role in the global energy transition.

The vanadium commitment aligns with WA Labor’s broader energy initiatives, including a recently announced A$387-million residential battery scheme, designed to help households lower power costs and further integrate battery storage into the grid.