Vanadium will be a ‘workhorse mineral of the battery storage and renewable energy sector’

Massive deposits of this critical metal will go into the next generation of batteries, powering Australia’s economy through the global energy transition.

• Julia Creek hosts one of world’s largest vanadium deposits
• Vanadium mine near Julia Creek gets tick of approval from federal government

NORTH Queensland is in the box seat to cash in on the renewable energy revolution, thanks to a massive deposit of a critical ingredient for the next generation of batteries.

Vanadium is a lesser-known metal able to be used as a major component of large-scale Vanadium Flow Batteries for a reliable, safe, and stable solution for the storage of renewable energy.

Vanadium redox flow battery (VRFBs)

It can also be used in steel alloys for aerospace, automotive, aircraft carriers and the creation of high speed/ high strength tools.

Several companies including QEM, Multicom, and the Vecco Group have struck vanadium deposits around Julia Creek and are feverishly working their way through the approvals process to begin processing vanadium for the innovative energy solutions of the future.

Vecco Group Managing Director, Thomas Northcott said vanadium mining and the new economy mineral manufacturing industry will create jobs for the future while supporting new renewable energy projects.

“We have an opportunity to create a world class integrated supply chain linking Vecco’s vanadium project near Julia Creek with a battery manufacturing hub in Townsville to supply batteries for the Queensland energy network,” Mr Northcott said.

“Vecco Group is currently undertaking detailed design of its battery manufacturing facility and planning to commence production in Q2 2022.”

The QEM Limited Julia Creek vanadium / oil shale project. Picture: Supplied.

With exploration underway in other parts of the country, Townsville Enterprise chief executive Claudia Brumme-Smith said it was critical that we didn’t miss the boat on the next generation of sustainable mining.

“We can and should be proud that right here in our backyard we have access to a new economy metal that will drive an energy transition like never seen before,” Ms Brumme-Smith said.

Townsville Enterprise CEO Claudia Brumme-Smith. Picture: Evan Morgan

“The use of vanadium batteries for energy storage is an emerging market anticipated to drive a structural change in the vanadium market which is already taking place across Europe.

“The combination of the vanadium concentration, economics, and sustainability of processing in the North West provides an opportunity like nowhere else in the world.”

In addition to vanadium’s significant export potential, she said there was great opportunity for the creation of local manufacturing plants that value add on the commodity, such as battery plants.

One of the largest deposits of vanadium and oil shale in the world and located less than 16km east of the township of Julia Creek. Picture: QEM.

“Common user infrastructure is the next step to deliver on this market trend, meet future demand, and generate economic opportunities across all of Queensland,” she said.

The global vanadium market was expected to grow from $1.49 billion in 2020 to $1.6 billion in 2021 at a compound annual growth rate of 7.4 per cent, reaching an expected $2.36 billion by 2025.

Resources Minister Scott Stewart said the North West Minerals Province has the potential to become a significant supplier of high-quality vanadium to the energy storage and steel markets during the global energy transition.

“Vanadium will be a workhorse mineral of the battery storage and renewable energy sector which is why it’s exciting to see potential projects being put forward,” Mr Stewart said.

Vanadium is hosted in the limestone sediments of what was once an ancient inland sea in central and northern Queensland.

Multicom’s Saint Elmo Vanadium Project near Julia Creek in North West Queensland will develop an open cut mine for the production of vanadium. It will create more than 200 jobs during construction, with hundreds more to follow once the mine is operational and as its output grows.

The Saint Elmo Project was granted Major Project Status by the Federal Government on 11 December 2019. 

Multicom’s CEO Shaun McCarthy said the company’s Saint Elmo Project is on track for completion of a number of major milestones including Mining Lease grant and Definitive Feasibility Study in 2021. 

“This will enable Multicom to rapidly move towards project construction and operations, which will see Queensland as the newest entrant to the global vanadium supply chain, at just the right time to support the growing energy storage market and trend towards green steel,” he said. 

“Multicom’s Saint Elmo Project will produce low-carbon emission, high purity vanadium at globally competitive prices.

“We’re excited to be part of the growth and diversification of the North West Queensland economy through critical minerals and are equally excited about becoming an integrated member of the incredibly supportive, Julia Creek community in the coming years.”

Crushed Vanadium ore is piled up at Canadian based Strategic Mineral Company Largo Resources' plant, near Maracas, in Bahia state, Brazil. / AFP PHOTO / YASUYOSHI CHIBA

 QEM Limited Managing Director Gavin Loyden said the company’s Julia Creek Project is one of the single largest vanadium deposits in the world. 

“In contrast to our WA counterparts, where the vanadium is hosted in magnetite, the vanadium on our tenements at Julia Creek is contained within an extensive oil shale resource,” Mr Loyden said.  

“Shale based vanadium doesn’t contain some of the naturally occurring contaminants that magnetite sources do, and therefore may be easier to produce, meaning we have a competitive advantage in producing high-purity battery electrolytes right here in Queensland.  

“QEM is moving quickly to deliver the dual commodity project at Julia Creek. This unique world-class deposit will provide QEM with significant penetration of the burgeoning vanadium battery market, liquid fuels sector and the Australian steel industry.” 

QEM receives positive results from preliminary testing for oil extraction near Julia Creek. Picture: QEM.

“This all underpins QEM’s intention to deliver innovative energy solutions and products to help meet Queensland’s stated ambitions of being a key driver in the development of the New Economy Minerals sector and with that, the employment and development opportunities that precipitate from it.” 

The Julia Creek Project is located less than 16km east of the township of Julia Creek and is intersected by the main infrastructure corridor of the Flinders Highway and the Great Northern Railway connecting Mt. Isa to Townsville.

Originally published as Vanadium will be a ‘workhorse mineral of the battery storage and renewable energy sector’