SIMPEC Secures $11M Contract to Boost Lithium Processing in Kwinana
WestStar Industrial's subsidiary SIMPEC has landed a significant $11 million contract to deliver structural and mechanical works at Tianqi Lithium's Kwinana plant, reinforcing its role in Australia's energy transition.
- SIMPEC awarded $11 million contract for structural, mechanical, and piping works
- Project supports lithium hydroxide processing at Tianqi Lithium Kwinana facility
- Contract aligns with Australia's broader energy transition goals
- Work scheduled for completion by Q2 2026
- Partnership strengthens WestStar's footprint in critical energy infrastructure
A Strategic Win for SIMPEC
WestStar Industrial Limited’s wholly owned subsidiary, SIMPEC, has been awarded a new contract valued at approximately $11 million to undertake structural, mechanical, and piping works at the Tianqi Lithium Energy Australia (TLEA) processing plant in Kwinana, Western Australia. This contract marks a notable milestone for SIMPEC, reinforcing its position as a key player in the industrial services sector supporting the energy transition.
Supporting Australia’s Energy Transition
The project involves integrating new mechanical equipment into the existing lithium hydroxide processing plant operated by Tianqi Lithium Kwinana, a joint venture between Tianqi Lithium Corporation and IGO Limited. Lithium hydroxide is a critical component in battery manufacturing, essential for electric vehicles and renewable energy storage solutions. By contributing to the expansion and upgrade of this facility, SIMPEC is directly supporting Australia’s shift towards cleaner energy technologies.
Execution and Timeline
The contract is set to commence immediately, with completion targeted for the second quarter of 2026. SIMPEC will be responsible for all structural, mechanical, and piping (SMP) works, a core competency that highlights the company’s engineering and construction capabilities. Managing Director Mark Dimasi expressed confidence in delivering the project safely and efficiently, underscoring the strong partnership with Tianqi Lithium Kwinana.
Broader Implications for WestStar
This contract award not only provides a substantial revenue boost for SIMPEC but also signals WestStar Industrial’s growing influence in sectors critical to Australia’s future energy landscape. As demand for lithium and battery materials continues to rise globally, companies like WestStar and its subsidiaries are well positioned to capitalise on infrastructure investments in this space.
Looking Ahead
While the announcement does not detail specific financial impacts beyond the contract value, the project’s successful delivery could pave the way for further opportunities within the lithium processing and broader energy sectors. Investors will be watching closely for updates on execution progress and any expansion of WestStar’s role in this strategically important industry.
Bottom Line?
SIMPEC’s latest contract cements its role in Australia’s lithium supply chain, with execution success key to future growth.
Questions in the middle?
- Will SIMPEC secure additional contracts from Tianqi or other lithium producers?
- How will this project impact WestStar’s overall earnings and margins in 2026?
- What are the potential risks or delays that could affect the project timeline?
