Queensland is set to host Australia’s first commercial-scale vanadium battery supply chain.
A $10 million state government investment will anchor a new electrolyte facility in Townsville.
The project, led by Vecco Group in partnership with Idemitsu Australia, will use ore sourced from Julia Creek to produce vanadium electrolyte for flow batteries.
Vanadium redox flow batteries are gaining traction globally as a long-life, recyclable storage solution for renewable energy, with advantages over lithium-ion in grid applications due to their ability to discharge for extended periods without degradation.
Establishing an end-to-end supply chain within Australia could reduce reliance on imported electrolyte and enhance Queensland’s position in critical minerals processing.
Once operational, the plant will provide a pit-to-port chain to supply global energy storage markets.
Early works are planned for 2026, with full operations expected to begin in 2028.
Government estimates suggest nearly 600 jobs will be created across North and North West Queensland through mining, processing, and downstream manufacturing.
Minister for Finance, Trade, Employment and Training, Ros Bates, said the initiative underscores the government’s ambition to move beyond raw mineral exports.
“Queensland has the resources the world needs, and the Crisafulli Government is making sure those resources deliver jobs, trade, and prosperity for our regions,” she said.
Vecco’s Managing Director, Tom Northcott, said the project is designed to respond to accelerating global demand for long-duration energy storage.
“With the support of our partners, Vecco is uniquely positioned to integrate mining and manufacturing, leveraging our expertise in critical minerals to strengthen the downstream supply chain in Queensland,” he said.
The Queensland Government has pitched the investment as part of a broader strategy to rebuild confidence in the resources sector and attract international capital into advanced manufacturing.