The Queensland government will provide a $10 million boost for the local production of vanadium, a key ingredient in the production of redox flow batteries.
Australia has one of the world’s largest reserves of vanadium, but currently none of the material is processed locally.
Vanadium is a crucial material in the manufacture of redox flow batteries, a technology that has emerged as a competitive option for longer duration energy storage projects.
The Queensland government announced on Tuesday that it would allocate $10 million towards the construction of a “common-user” processing facility, allowing a range of small and medium companies to process vanadium for local use.
Queensland treasurer Cameron Dick said the new facility would help position the state as a leader in the production of materials used in clean energy technologies.
“We want regional Queensland to be a global leader when it comes to everything that’s part of the renewable energy revolution,” Dick said.
“Vanadium is used for the construction of large-scale grid batteries that store their charge in tanks of liquid.
“Because they hold their charge in a liquid form, redox batteries can be built to a much larger scale, powering larger communities for longer.”
The treasurer added that the new facility, once operational, would be available for use by companies that did not have the resources to establish their own facilities.
“We will put at least $10 million towards this common-user facility, with the final amount depending on the outcome of the construction tender,” Dick added.
“A common-user facility can be used by multiple, smaller mining companies that do not have the available capital to set up their own processing facilities. This is an important step in attracting further investor interest and future off-take agreements.”
In September, the Queensland government announced that it had given the green light to the Saint Elmo vanadium mine, which will be located in the state’s northwest, which will become one of Australia’s first production facilities for the metal.
The Queensland department of resources will seek detailed proposals and costings for the project early next year, with construction expected to start sometime in 2022. The project is expected to be operational in 2023.
Queensland resources minister, Scott Stewart, said the processing plant, and the Saint Elmo mine, would help the state establish a local supply for redox flow batteries, underpinning the growth of a local manufacturing industry.
“The Saint Elmo mine alone will support up to 400 regional jobs, laying the foundation for a potential next level industry in Queensland manufacturing vanadium redox flow batteries,” Stewart said.
“Saint Elmo is just the beginning, with other companies progressing other potential vanadium mines in what could become a world-class vanadium hub in the North West, so having this processing facility in Townsville will ensure locals reap the benefits.”
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