Critical Minerals Group secures Crestmead factory that will produce ‘fuel’ for vanadium-flow batteries

A Queensland company has taken another step towards helping to wean us off coal-powered electricity after securing a factory to produce ‘fuel’ for green vanadium-flow batteries.

Critical Mineral's Group managing director Scott Winter. Picture: Patrick Woods.

ASX-listed Critical Minerals Group will build South East Queensland’s first vanadium pentoxide electrolyte manufacturing factory, as Australia weans itself off coal-powered electricity with green energy.

Their $6m factory in the Crestmead Business Park, in the Logan City Council area, will be commissioned at the start of 2026.

It will produce the `fuel’ for vanadium-flow batteries which typically are used for grid scale or to electrify large scale factories. It is an alternative to lithium-ion batteries, which are focused on vehicles.

CMG managing director Scott Winter believes vanadium will play an increasing important role in Australia’s energy future and the Crestmead factory – designed and constructed by Sedgman – will be a large part of that.

“It’s huge for two reasons – the grid is going to need long duration storage going forward. As coal fired power gradually comes off, there’s no replacement for base load power and that’s what this battery does,” he said.

“The other thing that’s significant is that we’re establishing a supply chain in Australia rather than buying offshore which is expensive.

“This is an essential capability in our strategy to deliver energy storage solutions to our local and international clients. Vanadium electrolyte doesn’t degrade and can practically last forever.”

Critical Mineral's Group managing director Scott Winter at their Brisbane CBD office. Picture: Patrick Woods.

Australia currently has about 24 per cent of total global vanadium deposits, and Queensland holds nearly half of the total Australian resources.

CMG is on the way to creating three integrated businesses: vanadium pentoxide mining from its Lindfield Vanadium Project near Julia Creek in northern central Queensland; vanadium electrolyte manufacturing from its Logan manufacturing facility; and battery energy storage solutions.

According to CMG’s website the Lindfield vanadium project has the practical and financial attributes to potentially develop a successful 4 million tonne per annum mine. About 72 per cent of the resource is located within 20m from surface.

Mr Winter said they have expectations of mining vanadium at Lindfield by 2029.

In the meantime the company will source the mineral offshore so they can manufacture vanadium electrolyte for batteries in its new factory, making it cashflow positive for the first time.

Vanadium-based electrolyte is the batteries’ so-called fuel which is typically a solution of vanadium pentoxide dissolved in sulfuric acid, which allows for the storage and release of energy through redox reactions.

“We can sell the electrolyte to vanadium flow battery companies but we are also in the process building downstream businesses where we can procure the batteries which we can put our own vanadium electrolyte in and we will be a supplier of batteries,” Mr Winter said.

The factory for Critical Minerals Group new vanadium electrolyte manufacturing business at Crestmead that will be commissioned by the start of 2026.

CMG is backed by Japanese mining company Idemitsu which also has the majority ownership of Australian battery start-up Vecco Group which has started producing vanadium electrolyte at a new factory in Townsville. Vecco also has vanadium deposits near Julia Creek as does QEM and Multicom.

Other major shareholders in CGM are Broseley Investments, Cape Coal and IGS Capital.

Vanadium is a silver-grey ductile and malleable metal that has a natural resistance to corrosion and stability against alkalis, acids and saltwater.

It is one of a small group of elements whose atomic structure allows them to form a range of ions with different charges. This property is unique to transition metals and sets them apart from other elements in the periodic table.

The mineral is classified as a ‘Critical Mineral’ and is strongly backed and supported by the federal and Queensland governments.

With a market capitalisation of $10.5m CMG received as $2m grant from Queensland Treasury early in 2024, and $2.7m from the Australian Government for the $2.7m in December last year.

In August 2024, CMG successfully completed a fully underwritten entitlement offer raising about $2.5m.

The new factory will consist of a single 12-cell electrolyser unit that has nameplate capacity to produce 1 million litres of vanadium electrolyte per annum.

CMG’s Drilling Program at its Lindfield Vanadium Project in Julia Creek.

An experienced mining engineer with almost 30 years working across all aspects of mining exploration, development, engineering, financing and operations, Mr Winter has been with CMG since 2023.

He said Logan has long been identified as an economically thriving city that takes a proactive stance in supporting the clean energy transition.

“The city provides opportunities in supply chain optimisation and provides superior connectivity to major centres and transport hubs,” he said.

“Having reviewed other potential locations in southeast Queensland, the geographic benefits, as well as the council’s clear commitment to businesses supporting the renewable energy transition, we were of the view that Logan was the best choice for CMG.”

In October last year, Pan Pacific Recycling moved to Crestmead Business Park to construct Queensland’s first solar panel recycling plant, while Logan City Council and Origin Energy signed an Australian-first, multi-scope agreement to help the city move towards Real Zero while supporting the region’s energy grid.

Logan Mayor Jon Raven said CMG had joined a growing number of advanced technology businesses choosing to base themselves in Logan.

“CMG is a great fit for Logan, the youngest and fastest-growing city in Queensland, because we’re at the forefront of energy solutions,” he said.

“Manufacturing vanadium batteries is part of my vision to transition Logan’s economy to high value local jobs in innovative and renewable energy industries and I’m looking forward to seeing the positive impact this partnership will have.”