It is something that has been under consideration for a while,...

It is something that has been under consideration for a while, cheap and reliable power being the stumbling block.


"WA already has three operating lithium mines — Mt Marion, Greenbushes in the South West, and Mt Cattlin near Ravensthorpe — but it could be as many as six by this time next year.

ASX-listed Neometals, a part-owner in the Mt Marion lithium mine near Kalgoorlie-Boulder, has previously proposed the development of a $200-million-plus lithium refinery near the Goldfields capital.

But access to power has been a major stumbling block, with Mt Marion trucking in liquefied natural gas (LNG) because there was not enough capacity in Western Power's grid.

Mr Gallagher said if the proposed lithium refinery was built near the city, it would bring the same economic benefits as the Kalgoorlie Nickel Smelter.

The smelter was opened amid a nickel boom by prime minister Gough Whitlam in 1973 and is still running under current owners BHP.

"I think the fact it's [Mungari Industrial Estate] on the radar — that's a good start," Mr Gallagher said."