The closure of the Albemarle lithium refinery, once projected to be the largest in the world, has raised concerns about the viability of the lithium processing industry in Western Australia. Located 150 kilometers south of Perth, the refinery halted its operations after just four years due to rising operational costs and intensified competition, particularly from China. This development comes after a decade of hope and investment from the WA government, which had positioned the state to capitalize on the global demand for lithium driven by the battery production boom.

With the refinery's closure, the state faces a stark reality check about its critical minerals ambitions. Despite initial enthusiasm and government backing, the challenges of maintaining such operations have proven significant, leading to fears of job losses for the hundreds of employees affected. The trend of other critical mineral processors also winding down operations across Australia exacerbates these concerns, suggesting that the situation may not be isolated to Albemarle alone.

Industry stakeholders remain cautiously optimistic, noting that despite the hurdles presented by escalating costs and external competition, some are continuing to operate. The challenges are significant, but the drive for lithium remains strong, particularly given the global push for renewable energy solutions. However, this incident serves as a critical reminder for the WA government and industry players to reassess their strategies and improve the resilience of the sector in a competitive global landscape.