IGO and Wyloo have paused their proposal for a $1 billion battery precursor processing facility in Kwinana due to a downturn in the battery metals market.

The project, announced in April, aimed to produce a precursor cathode material by mixing nickel, cobalt, and manganese.

The material would then be combined with lithium to create a product for electric vehicle batteries. During construction, the plant would employ 1,200 people.

An IGO spokesman confirmed that the feasibility study for the project has been paused due to current market conditions.