PERTH (miningweekly.com) – The Queensland government has welcomed the development of the A$26-million Townsville vanadium battery manufacturing facility being developed by Vecco Group, as Australia’s first commercial-scale vanadium flow battery electrolyte manufacturing facility.

Vecco Group’s new facility will produce the electrolyte used in grid-scale vanadium flow batteries and will support the development of Vecco’s Debella critical minerals mine.

The Townsville vanadium battery manufacturing facility is expected to begin production later this year. When operational, it will employ 21 people and produce nine megalitres of electrolyte annually, equating to an energy storage capacity of 175 MWh annually with plans to expand to 350 MWh.

The Debella vanadium and high purity alumina (HPA) project, in turn, is expected to start production in 2024 and will produce 5 500 t/y of vanadium pentoxide and 2 000 t HPA annually over a mine life of more than 50 years.

The Queensland government is supporting the construction of the facility through its Industry Partnership Program, and the project is part of the Queensland Energy and Jobs Plan, which includes creating a North Queensland battery industry supply chain.

“Thanks to Queensland government support, Vecco Group is building the vanadium industry which will bring more jobs and investment to North Queensland,” Vecco Group MD Thomas Northcott said.

“This manufacturing facility will be a key enabler for vanadium flow batteries in the Queensland grid. We’ll be able to integrate mining and manufacturing and apply our expertise in critical minerals into the downstream supply chain to assist Queensland to achieve its renewable energy target.

“Australia’s demand for medium and deep duration storage by 2050 has been estimated at over 180 GWh by the market operator, vanadium flow batteries made right here in Townsville from Queensland’s minerals can help meet this need while creating good jobs in regional areas.

“We look forward to taking advantage of all the opportunities opening up for renewable energy manufacturing now that the Queensland Energy and Jobs Plan is being delivered.”

Minister for Resources Scott Stewart said there was enormous potential for vanadium mining and production in North Queensland as demand for vanadium batteries continued to rise.

“The government is supporting the creation of a whole supply chain in North Queensland. The North West Minerals Province has an abundance of critical minerals like vanadium which is needed to produce large-scale batteries which are a key part of Queensland’s Energy and Jobs Plan.

“There are huge opportunities to continue creating good jobs in both our resources industry and renewable energy sector through developing critical minerals projects.”