Asian trade trip strengthens Queensland Pacific Metals Lansdown plans, Premier says

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A North Queensland venture is on the cusp of supplying critical metals for the burgeoning EV battery market.

Queensland Pacific Metals is developing the Townsville Energy Chemicals Hub (TECH) project near Townsville at Lansdown, which will process the critical minerals that go in lithium-ion and EV batteries.

Battery manufacturers LG Energy Solutions and steel producers POSCO, both massive South Korean companies, already have offtake agreements for the TECH project, in exchange for respective US$10.5m and US$4.5m investments.

A delegation led by Premier Annastacia Palaszczuk met with executives of both companies last week in South Korea, as part of a three-country trade trip.

“Through this project, Queensland Pacific Metals is on the cusp of delivering critical battery metals for electric vehicles,” the Premier said, adding the state’s “vigilance” would help global markets progress to net-zero emissions.

Queensland Premier Annastacia Palaszczuk speaks at the World Mining Congress in Brisbane in June. Picture: Dan Peled/NCA NewsWire

“We’re working with QPM on investment support for early works for the nickel and cobalt processing plant at the Lansdown Eco-Industrial Precinct as QPM target a final investment decision next year.”

The state government has designated the TECH project with ‘significant investment project’ status, meaning the state aims to ensure the project is provided with the necessary support from government to facilitate prospective investment in Queensland.

The TECH project at Lansdown, about 40km from Townsville.

Ms Palaszczuk said the TECH project would result in more than $2.1bn of investment in North Queensland, further development of the state’s critical mineral industry and create 1000 construction jobs and 300 operational jobs.

High-grade nickel laterite from New Caledonia will be imported to Townsville for processing at the plant.

QPM chief executive, Dr Stephen Grocott, said the company was poised to deliver the project and become a significant supplier of critical battery metals for the EVs.

A feasibility study on the project was recently completed, and this week QPM announced a non-binding memorandum of understanding, with New Caledonian miner Société des Mines de la Tontouta, to form a strategic partnership.

Queensland Pacific Metals are expected to make a final investment decision on the $2.1bn TECH plant in 2024.

Dr Grocott said the miner had been a strong supporter of the TECH project and the understanding was intended to underpin the ore supply for stages one and two of the project.

Based in Brisbane, QPM’s share price has fallen about 58 per cent since September 2021, to $0.11.

Originally published as Asian trade trip strengthens Queensland Pacific Metals Lansdown plans, Premier says