ANNOUNCEMENT 30 Jul 2020
The Australian government-funded Clean Energy Finance Corporation announced the allocation of up USD 21.7 million to support Pilbara Minerals.
NUMBER OF INTERVENTIONS
Clean Energy Finance Corporation. Media. Latest News. "Pilbara Minerals sets sights on growing lithium demand as CEFC lifts investment" of 30 July 2020. Available at: https://www.cefc.com.au/media/media-release/pilbara-minerals-sets-sights-on-growing-lithium-demand-as-cefc-lifts-investment/
Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.aspx
On 30 July 2020, the Clean Energy Finance Corporation (CEFC) of Australia announced the increase in support to Pilbara Minerals to help the company with its expansion of the Lithium-Tantalum Project. To do so, the CEFC committed USD 21.7 million.
Notably, in 2017, the CEFC already supported this project with USD 15 million (please see related state acts) and with the new investment, the total resources allocated by the government-funded institution to this project will sum up to USD 36.7 million.
According to the CEO of the CEFEC "[t]he CEFC is proud to strengthen our commitment to a company forging a new path for our resource sector while helping Australia transition to a low carbon economy,"
Clean Energy Finance Corporation
The Clean Energy Finance Corporation is a government-funded financier created to fund clean energies. To achieve these goals, the Australian government has provided credits of AUD 2 billion each year from 1 July 2013.
The statutory text, the Clean Energy Finance Act 2012, states that only solely or mainly Australian-based investments are eligible for these resources.
The Clean Energy Finance Corporation financing is subject to the Australian Industry Participation (AIP) policy. This framework states that all programs enclosed in this policy must encourage the participation of Australian companies in major public and private projects carried in the country. In this sense, companies applying for a CEFC credit line must provide an AIP Plan to demonstrate the strategy to maximize opportunities for Australian industry to participate in the project. Therefore, it can be understood that the USD 21.7 million investment that has been allocated to Pilbara Minerals, is subject to local content requirements.