SIMPEC Secures Contract for Kwinana Lithium Facility Expansion

3 min read | August 07, 2025 12:25 AM PDT | By Team Kalkine Media

Highlights

  • SIMPEC wins major lithium plant upgrade project
  • Expansion to enhance long-term operational efficiency
  • West Star Industrial strengthens role in energy infrastructure

SIMPEC, a fully owned subsidiary of West Star Industrial (ASX:WSI), has been awarded a significant contract for works at the Tianqi Lithium Hydroxide Processing Plant located in Kwinana, Western Australia. This project, valued at multiple millions, is aimed at expanding and modernising the current facility to support more efficient processing and future capacity requirements.

The contract awarded to SIMPEC includes a full suite of works — civil, structural, mechanical, piping, electrical, and instrumentation — all scheduled to be completed by early 2026. These activities will contribute to enhancing the plant’s overall performance and operational reliability.

Tianqi Lithium Energy Australia (TLEA), the joint venture that owns the Kwinana facility, is formed between Tianqi Lithium (HKG:9696) and IGO (ASX:IGO). This partnership is focused on ensuring a secure supply of lithium hydroxide, a key material for the battery and renewable energy sectors.

This contract reflects SIMPEC’s continued ability to deliver complex multidisciplinary projects, reinforcing its position as a capable service provider in Australia's growing lithium and energy sector.

West Star Industrial’s Role in Infrastructure Growth

West Star Industrial (ASX:WSI), as the parent company of SIMPEC, has strategically positioned itself in the infrastructure and industrial services domain, providing specialised project delivery across sectors such as energy, resources, and utilities.

This recent award builds further credibility for the group in large-scale industrial works, especially those aligned with national energy goals. It also marks an important step in strengthening its foothold within Australia’s lithium supply chain.

While West Star Industrial is not currently included among the ASX 200 stocks, the project underscores its alignment with the key growth sectors often represented within the ASX 200, such as energy transition and resource development.

Industrial Momentum in the Lithium Sector

The Kwinana Lithium Hydroxide Processing Plant is one of the first of its kind in Australia, designed to convert spodumene concentrate into battery-grade lithium hydroxide. SIMPEC’s involvement in its expansion further supports national efforts toward building domestic processing capacity.

The partnership with TLEA also signals confidence in SIMPEC’s ability to manage the intricacies of long-term, large-scale construction within sensitive and high-demand sectors. West Star Industrial’s capability to deliver such projects continues to set it apart as a key player in resource-focused infrastructure.

 

Frequently Asked Questions

  • What type of work will SIMPEC complete at the Kwinana facility?
    SIMPEC will carry out civil, mechanical, piping, electrical, and instrumentation works to upgrade the lithium processing infrastructure.
  • Who owns the Kwinana Lithium Hydroxide Plant?
    The plant is owned by Tianqi Lithium Energy Australia, a joint venture between Tianqi Lithium (HKG:9696) and IGO (ASX:IGO).
  • Why is this contract important for West Star Industrial?
    It strengthens West Star Industrial’s (ASX:WSI) position in the lithium sector and expands its presence in energy-related infrastructure development across Australia.

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