Idemitsu Kosan invest more in Vecco Group’s NQ operations

Queensland’s critical minerals have chalked another win, with a Japanese ‘giant’ making further investments in NQ.

A Japanese resources giant has doubled down on investment in North Queensland critical minerals.

A Queensland delegation met representatives of petrochemicals, lubricants and renewables company Idemitsu Kosan in Tokyo this week.

A further investment by the Japanese firm was inked in March, to the tune of $8.26m.

Vecco Group are the recipients of the investment and the company’s factory in Townsville, where electrolyte for vanadium batteries will be made, opened in June.

The factory is a first-of-its-kind in Australia, and is backed by the state government.

The delegation includes the Premier and resources industry figures visiting Japan, Singapore and South Korea.

Vecco Group’s vanadium electrolyte factory in Townsville. Idemitsu Kosan has a 14 per cent stake in the company. Picture: Shae Beplate.

Premier Annastacia Palaszczuk said Idemitsu Kosan had a history of significant contribution to the state economy.

Producing renewable energy will attract investment in the state from companies seeking to decarbonise, which was why the government established an Office of the Premier and an Office for Critical Minerals in Townsville, the Premier said.

State Resources Minister Scott Stewart is a fan of vanadium. Here he is sporting two different vanadium lapel pins. Picture: Blair Jackson

Queensland Trade and Investment Commissioner for Japan Tak Adachi said the state’s abundant natural resources and “world leading” innovation and technology in the sector made it attractive for investors.

Idemitsu Kosan had already staked $4.9m in Vecco, and the March investment gives it a 14.7 per cent shareholding of Vecco.

The Brisbane-based company is developing a vanadium, rare earth elements and high purity alumina mine near Julia Creek.

State Resources Minister Scott Stewart said it was great to have a “global giant like Idemitsu” investing in the future of the resources industry in Queensland.

The headquarters of Idemitsu Kosan in Tokyo. The company was founded in 1911. Picture: Zuma Press

“We know there are vast vanadium deposits in the North West Minerals Province and these minerals are in demand to use in batteries and renewable energy which the world is demanding,” Mr Stewart said.

Townsville Enterprise chief executive Claudie Brumme-Smith said “North and North West Queensland has what the world wants when it comes to renewable energy, green manufacturing and processing critical minerals”.

Ultimately the ambition was for Townsville to be the only city in the world where all the types of battery materials were processed, Ms Brumme-Smith said.

Originally published as Idemitsu Kosan invest more in Vecco Group’s NQ operations