NQ vanadium project gets $5m boost from state government amid battery demand

A North Queensland project has secured backing from the state government with a $5m investment to mine and process vanadium, a critical mineral for long-duration batteries.

A North Queensland vanadium project has received a $5 million boost from the state government to develop critical mineral resources for battery production, aiming to start construction within three years. Photo: Supplied

A North Queensland project has secured backing from the state government with a $5m investment to mine and process vanadium, a critical mineral for long-duration batteries.

The Queensland Critical Minerals and Battery Technology Fund is set to pump up to $5m into Velox Energy Materials for its North Queensland Vanadium Project (NQVP) in Julia Creek.

This prime spot — located midway between Mount Isa and Townsville — boasts a vast area rich in vanadium resources.

The investment, overseen by the Queensland Investment Corporation (QIC), aims to catapult Velox into a key position in the global critical minerals market.

Allison Hill, QIC’s state chief investment officer, explained that there was a high demand for vanadium, but current global production meets only a small fraction of this demand.

A North Queensland vanadium project has received a $5 million boost from the state government to develop critical mineral resources for battery production, aiming to start construction within three years. Photo: Supplied

“Up to two million tonnes of vanadium is required for battery storage to decarbonise industries and communities globally under 2050 net zero targets,” Ms Hill said.

“Total global production in 2023 represented approximately five per cent of this figure, so this sizeable deficit demonstrates the significant opportunity that projects like NQVP allow Queensland to harness in the next critical minerals resources boom.”

The goal is to kick off construction within three years, creating over 50 jobs initially and 150 jobs during the mining phase, which is expected to span 30 years.

However, Velox must secure an additional $4 million by the end of 2024 for the deal to go ahead.

Velox Energy Materials’ CEO, Simon Coyle, said the project was now pushing forward with mining and processing studies.

“There really isn’t a better place in the world to be developing a vanadium project than in Queensland,” he said.

He highlighted that the project will help produce batteries for regional Queensland, using local resources.

Originally published as NQ vanadium project gets $5m boost from state government amid battery demand