A joint venture between subsidiaries of Wesfarmers and Sociedad Quimica y Minera de Chile, Covalent is developing the refinery as part of the integrated Mount Holland lithium project.

Along with the refinery the project will include a spodumene mine and concentrator near Mount Holland in WA's Goldfields.

Following a final investment decision in February Wesfarmers managing director Rob Scott said subject to final approvals, construction of the mine, concentrator and refinery was expected to start in the first half of 2022, with 1000 construction and 350 operational jobs to be created.

He said Covalent would start purchasing long lead time items in late-2021 and move to production in the second half of 2024.

The refinery in Kwinana will have capacity to produce enough batteries for up to 1 million electric vehicles per year.

WA mines minister Bill Johnston said Kwinana was already a thriving hub of activity, with Alcoa, CSBP, Wesfarmers LPG, Tianqi Lithium and the Avertas waste to energy plant calling the heavy industrial corridor home.

State development, jobs and trade minister Roger Cook said the Kwinana SIA played a vital role in supporting WA's economy.

"The investment by Covalent Lithium reinforces the importance of the government's commitment to establishing a globally advanced manufacturing hub for the industrial corridor between Henderson and Rockingham," he said.

Lands minister Tony Buti said the supply of industrial land in the right place, at the right time, was a vital component of a strong and resilient economy.

"The Kwinana SIA sits in the heart of the state's premier heavy industrial zone, with access to the Fremantle Port and major road and rail networks," he said.

"It's pleasing to see this specialist industrial precinct set to become home to a significant new facility that will ultimately help to reduce reliance on fossil fuels and foster a more sustainable energy future."