PERTH (miningweekly.com) – The federal government on Wednesday announced over A$243-million in funding support for four critical minerals projects under the Collaboration Stream of the A$1.3-billion Modern Manufacturing Initiative.

The four projects are expected to create over 3 400 jobs over time and cement Australia’s place in the rapidly growing critical minerals, electric vehicle and battery markets.

Australian tech company Pure Battery Technologies has been awarded A$119.6-million for its A$399-million Western Australian precursor Cathode Active Material (pCAM) hub, in partnership with nickel miner Poseidon Nickel, where it will build an integrated nickel/manganese/cobalt battery material refinery hub in the Kalgoorlie region.

The hub will be established in Kalgoorlie and will initially produce 50 000 t/y of pCAM, enough to produce up to one million lithium-ion electric vehicle batteries, and will result in 380 construction jobs and 175 initial permanent jobs from 2023.

“This federal grant from the Modern Manufacturing Initiative will accelerate the growth of the battery materials industry in Australia. We thank the government for their significant support, and look forward to delivering this exciting new project,” Pure Battery Technologies chairperson Stephen Wilmot said on Wednesday.

Meanwhile, the government has also awarded ASX-listed Australian Vanadium A$49-million in funding to support the development of its A$367-million namesake project, in Western Australia, which will process high-grade vanadium from its Meekatharra mine and transport it to its Tenindewa plant powered by clean hydrogen from partner ATCO Australia.

The project is one of the most advanced vanadium projects being developed globally and will produce a vanadium concentrate at the resource site and complete production of a high purity vanadium and an iron titanium (FeTi) coproduct at a processing plant located near the port city of Geraldton.

The project will ship 900 000 t/y of FeTi coproduct through the Port of Geraldton for the 25-year life of the project, with more than 740 jobs to be supported.

Australian Vanadium MD Vincent Algar said the company was delighted with the government grant.

“We have developed an innovative and collaborative approach to building a fully integrated project, from mine through to processing and end-use in the steel and battery markets. Our collaborations are allowing us to build a project with unique social and environmental benefits. We look forward to working with our partners to bring the Australian Vanadium project into production and further develop downstream opportunities for green steel and the vanadium redox flow battery market,” he said.

Fellow-listed Arafura Resources has also been awarded A$30-million for its flagship Nolans project, in Central Australia, which will be a first of its kind rare earth separation plant in Australia and only the second outside China.

The A$90.8-million project, located in the Northern Territory, will leverage Australia’s mineral processing expertise to develop rare earth separation technology not currently available here now, creating 650 jobs at the peak of construction and new high-value export opportunities.   

An updated feasibility study estimated that over a mine life of 38 years, the project would produce 4 440 t/y of neodymium-praseodymium oxide and 474 t/y of heavy rare earth oxide, as well as 144 393 t/y of phosphoric acid.

Arafura MD Gavin Lockyer said that the grant was an exciting milestone for the company, and recognised the strategic significance of the Nolans project, and its place in the future of critical minerals processing in Australia.

“Rare earths are critical to the manufacture of electric vehicles and wind turbines, with demand growth forecast to be exponential in coming decades. Australia has a window of opportunity to invest in strategically important rare earths projects such as Nolans and maximise the local jobs and investment benefits of the clean energy revolution,” he said.

Meanwhile, ASX-listed Alpha HPA has also been granted A$45-million in funding for its A$330-million project with Orica to construct a high purity alumina production facility near Gladstone that will help meet the rapidly expanding demand for lithium-ion batteries and LED lights, with more than 300 jobs to be created from this year.

The HPA First project will produce 10 000 t/y of HPA and related high purity precursor products using Alpha’s proprietary licensed solvent extraction and HPA refining technology.

Alpha is fully funded for the commercial production at its Stage 1 precursor production facility, which is scheduled to start production in the September quarter.

Prime Minister Scott Morrison said on Wednesday that the four projects were key to securing manufacturing in Australia and the thousands of jobs that come with those industries.

“Projects like these make for a stronger economy and a stronger future for Australia. These projects are about manufacturing the products and materials Australians need and the world needs, by making them right here at home.

“We’re helping grow the local critical minerals processing and clean energy industries and locking in the future of those industries by backing manufacturing projects in Australia.

“The A$1.3-billion Modern Manufacturing Initiative is a key part of my government’s plan for a stronger economy and a stronger future for our country.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor said these projects would help Australia capture even more parts of the global supply chain, while at the same time helping power the lives of Australians. 

“The things we use every day like our smartphones, computers and rechargeable batteries need to be made with critical minerals. They are also needed to make solar panels, electric cars, defence technology and many other high-tech applications.

“Australia is lucky to have some of the largest reserves of the critical minerals and metals which drive the modern global economy. But China currently dominates around 70% to 80% of global critical minerals production and continues to consolidate its hold over these supply chains. This initiative is designed to address that dominance. 

“These projects are not only game-changers for the local region with the creation of new jobs, they will also open up incredible export opportunities.”