Vanadium to help make Qld a critical minerals superpower
Queensland will soon begin mining a critical mineral used to make long-lasting recyclable batteries, in a massive boost to the economy.
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Queensland will soon begin mining a critical mineral used to make long-lasting recyclable batteries, with the emerging industry having the potential to generate more than 2000 jobs and tens of billions of dollars for the state’s economy.
Brisbane-based Vecco Group has revealed its integrated mining and manufacturing vanadium project in Julia Creek is expected to be operational in 2027 and will employ around 275 people.
This story is part of The Courier-Mail’s special Future Queensland: Resources series that reveals the truth about the contribution the much-maligned resources industry makes to Queensland. You can read all of our coverage here
Listed as a critical mineral in Queensland, vanadium is used to strengthen steel alloys and is now in demand to produce large-scale alternatives to lithium-ion batteries.
The vanadium mined from Julia Creek will be processed through Vecco’s $11m electrolyte manufacturing facility in Townsville, which is the first of its kind in Australia.
The facility can process two million litres of electrolyte each year from approximately 300t of vanadium.
Most of the vanadium used to date has been sourced from South Africa.
But China, Australia and Russia have the largest deposits of vanadium globally.
Vecco Group managing director Tom Northcott said: “By establishing a vanadium industry here in Queensland, multiple mines and battery manufacturing facilities can be supported, enabling export opportunities for locally manufactured vanadium and the battery electrolyte.
“This industry has the potential to generate over 2000 jobs and tens of billions of dollars for the Queensland economy.”
Construction of Vecco’s Julia Creek mine and manufacturing facilities is planned to commence in 2025.
Over the 28 years of expected life, Vecco has projected it will mine and process around $7.8bn in vanadium, generating mining royalties for Queensland.
“There is significant demand for our vanadium battery electrolyte product from Queensland mined vanadium,” Mr Northcott said.
“Securing a stable and suitable supply of vanadium is critical to supporting the deployment of vanadium batteries.”
Global demand for vanadium batteries has grown significantly over the past 18 months and is projected to continue over the coming decades.
The International Energy Agency anticipates vanadium demand will increase eightfold by 2050.
Vanadium electrolyte accounts for approximately half of a vanadium battery and is where the energy is stored within the battery.
Mr Northcott said Queensland had an “exceptional reputation” for its mining industry and an emerging status as a global battery innovation hub.
He said until their Julia Creek mine commenced production, in order to address the growing demand of electrolyte from battery manufacturers, they would continue sourcing vanadium from third parties.
“The demand is coming from manufacturers looking to deploy batteries in Australia, Southeast Asia, the USA, and Europe,” he said.
“Vecco will refine 100 per cent of the (Julia Creek) mine’s output into high purity vanadium in Queensland, retaining one third of production in Australia with the other two thirds being exported to our manufacturing operations in the USA and Europe.”
Vecco is also progressing plans to establish its vanadium battery electrolyte manufacturing facility in the USA.
In a separate project published the federal Chief Economist’s resources and energy major project list, Richmond Vanadium Technology Pty Ltd also has a proposed mine with an estimated commercial start date in 2025.
The state government has allocated $75 million in funding for Critical Minerals Zones in North Queensland in areas around Julia Creek and Richmond to support the vanadium industry.
FAST FACTS
What is vanadium?
A type of metal that is really durable, but also soft and pliant. It’s extremely strong; just a small amount added to steel alloys can strengthen the material to make it shock and vibration proof.
Where is vanadium used?
In massive construction projects, like the Birds Nest stadium in Beijing, Wembley Stadium in London, the Petronas Towers in Kuala Lumpur and the Freedom Tower in New York City. As well as making strong steel alloys, it can be used in treatments for medical conditions like heart disease, diabetes and high cholesterol. It can also be used in the process of dying ceramics and fabrics, for creating sulphuric acid and making superconducting magnets.
Where is vanadium found?
It’s found in mineralised deposits. Over 60 types of mineral and various types of rocks are known to contain vanadium. China, Australia and Russia have the largest deposits of vanadium globally.
What will vanadium be used for in Queensland?
Redox Flow Batteries as they can be charged thousands of time and store energy for an indefinite period of time, unlike lithium batteries. They have a long lifespan, lasting at least 20 years.
Source: Queensland State Development and Infrastructure
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