Hatton said the Albemarle Lithium proposal for the Albemarle Kemerton Plant was environmentally acceptable and could proceed, subject to certain conditions.
Those conditions include preparing a flora and vegetation monitoring and management plan to minimise the potential impact on threatened flora and fauna.
The fauna the EPA is most concerned about is the Carnaby's Black Cockatoo, the Forest Red-Tailed Black Cockatoo and Baudin's Black Cockatoo.
Albemarle will also be required to develop a water management plan to ensure the quality and quantity offsite surface and groundwater was maintained.
It will also have to prepare an offset strategy and conduct greenhouse gas reporting.
Albemarle plans to process spodumene ore concentrate from the Greenbushes lithium-tantalum mine it co-owns with Tianqi Lithium Australia, through five process trains to produce up to 100,000tpa of lithium hydroxide and up to 200,000tpa of sodium sulphate by-product .
The plant is planned to be located within the Kemerton Strategic Industrial Area and will have a maximum disturbance footprint of 89.25 hectares to build the plant, associated infrastructure and a service corridor to provide road access from Marriott Road, as well as electricity, natural gas, water and telecommunications.