Queensland to fast track $1.23bn graphite mine in order to break China’s dominance

Queensland will fast track a $1.2bn graphite mine to service the country’s first battery anode hub as Australia seeks to reduce China’s dominance of a mineral critical for batteries.

The supply of graphite is crucial for the growth of electric vehicles.

Queensland will fast track a $1.23bn graphite mine to service the nation’s first battery anode hub as Australia moves to reduce China’s dominance of the critical battery mineral.

The project will involve privately held Graphinex developing a greenfield graphite mine at Croydon in northwest Queensland, as well as a processing plant in Townsville. The project will create 100 jobs during construction and 133 at peak operational capacity.

The project, which has been declared a co-ordinated project by the Queensland government, aims to build sovereign capability in battery manufacturing as surging global demand for natural graphite is forecast to rise 140 per cent by 2030.

Graphite provides the negative charge in lithium batteries and is the largest material in electric vehicles by weight, making it crucial for the clean-energy transition.

China dominates 98 per cent of graphite anode production, and companies such as Graphinex are expected to become increasingly important as an alternative supply – especially for the US and Europe. The facility has been backed by capital secured through a trade mission to North America led by Queensland’s Natural Resources and Mines Minister Dale Last earlier this year, and the Crisafulli government playing “matchmaker” to secure the investment.

Major investors include Japan energy giant Idemitsu and Indonesian resources company Baramulti. Subject to approvals, construction is anticipated to begin in 2027, and operations to begin about 18 months later.

Graphinex managing director Art Malone said the co-ordinated project declaration would reduce development timelines by at least 12 month. It would allow the state’s Co-ordinator-General to facilitate environmental approvals from the Queensland and federal governments, and involve stakeholder and community consultation processes.

“Approvals are the hardest thing to come by in any mining project and having the Co-ordinator-General stand behind you and stand behind the project means a lot,” he said. “It means a lot shorter time frames in a co-ordinated approach.”

Mr Malone said the international supply of graphite had been hampered due to export restrictions imposed by China over the past couple of years.

“To put the need for supply in perspective, in every electric vehicle lithium battery there’s 6kg of lithium and 52kg of graphite,” he said. “China processes 98 per cent of the world’s graphite so Japan, South Korea, the US and Europe are really looking for outside supply, and that’s become critical for us.

“We’re getting original equipment manufacturers and car manufacturers reaching out direct to try to move away from China supply because they put in place export restrictions two years ago. So it’s been really difficult to get the material out and Australia at the moment doesn’t produce any graphite.”

Mr Malone said the company had a “completely unique deposit” in one of the richest graphite reserves in the world.

“Our deposits are hard-rock volcanic,” he said. “Typically, every other graphite in the world is sedimentary and soft. Ours is a different style and style is important because it results in ultra-high performance and also batteries that last longer.”

Mr Last said the region had a reported 25 million tonnes of graphite – the third-largest deposit in the world.

“This is an exciting milestone that positions Queensland as a leader in graphite mining and processing,” Mr Last said.

“Investors are looking at jurisdictions that offer certainty, clarity and low sovereign risk.

“We’ve made it our mission to connect international investors with Queensland innovation, backed by the work of the resources cabinet committee to streamline approvals and get more projects like this off the ground.”

The Queensland government committed $5.1m in last month’s state budget to enhance mineral exploration and identify new opportunities across the state.

Originally published as Queensland to fast track $1.23bn graphite mine in order to break China’s dominance