The $26 million Townsville Vanadium Battery Manufacturing Facility will be 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 – a type of battery leading the energy storage revolution. Production is expected to begin later this year.
When operational, the facility will employ 21 people and produce nine megalitres of electrolyte annually for use in vanadium flow batteries, equating to energy storage capacity of 175MWh annually and growing to 350MWh.
The facility will support the development of Vecco Group’s Debella Critical Minerals Mine, and will lead to downstream manufacturing and create a new link in the supply chain.
The construction of the facility is supported by the Queensland state government through its Industry Partnership Program. The project is part of the Queensland Energy and Jobs Plan, which includes creating a North Queensland battery industry supply chain.
Vanadium flow batteries are a proven grid-scale energy storage solution with advantages including a long lifespan, lengthy storage capability, and being non-flammable.
The Queensland government’s $75 million investment in the Queensland Resources Common User Facility is Australia’s first critical minerals demonstration facility to be built in Townsville.
Vecco plans to produce vanadium and high-purity alumina at its Debella Project near Julia Creek will be integrated with the new manufacturing facility. Until the Debella project comes online, Vecco Group will use imported vanadium to produce high-grade vanadium electrolytes in Townsville.
A Queensland Battery Industry Strategy is currently being developed to grow local industry and supply chains. The ‘Battery Industry Opportunities for Queensland’ discussion paper is open for public consultation until 31 March 2023.
Vecco Group managing director 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 180GWh 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.”
Queensland premier Annastacia Palaszczuk said the vanadium batteries will change the game for renewable energy storage.
“A key to my government’s landmark Energy and Jobs Plan is supercharging our SuperGrid with initiatives like this, as we transition to a cleaner, more reliable energy system,” she said.
“There’s no better place to launch an Australian first than here in Townsville – the gateway to Queensland’s vast renewable energy zone and North West Minerals Province.”