Image source: Vecco Group Pty LtdQIC is advancing a North Queensland critical minerals project with a $10 million investment in Vecco Group to establish Australia’s first pit to product vanadium flow battery supply chain.
The senior secured loan facility will enable Vecco to progress through to a final investment decision for the fully integrated mining and processing project, delivered in partnership with industrial heavyweight Idemitsu Australia.
This includes the development of one of Australia’s largest JORC-compliant vanadium resources near Julia Creek, and a commercial-scale manufacturing facility designed to produce up to 600MWh/year of electrolyte in Townsville.
A 35MWh/year demonstration facility has been operational in Townsville since 2023, validating Vecco’s processing technology, supporting early market engagement and delivering electrolyte to domestic and international battery customers.
QIC Senior Investment Director Jonathan Crombie said the investment was a strategic step in advancing Queensland’s sovereign capabilities in critical minerals processing and battery manufacturing.
"Vecco is advancing the kind of vertically integrated supply chain Queensland needs to remain globally competitive in clean energy technologies."
Jonathan Crombie - Senior Investment Director, QIC
“Vanadium Redox Flow Batteries are a mature technology and a fast-growing segment of the market with global demand expected to increase fivefold by 2030 driven by the need for long-duration, grid-scale energy storage.
“With VRFBs consuming a rising proportion of available vanadium, the Vecco project’s planned output is not only substantial, but its end-to-end vertical integration offers Queensland much-needed domestic supply to reduce reliance on overseas sources.
“We consider this an opportunity to align national interests, local capabilities and regional development, with the potential to create more than 600 jobs across Queensland’s North West.”
Image source: Vecco Group Pty LtdVecco Group Managing Director Tom Northcott said the project will position Queensland as a leader in meeting the world’s rapidly growing long-duration energy storage demands.
“With the support of our partners, Vecco is uniquely positioned to integrate mining and manufacturing, leveraging our expertise in critical minerals to strengthen the downstream supply chain in Queensland,” Mr Northcott said.
“The transformative Vecco Critical Minerals Project will create hundreds of regional jobs, and we thank QIC for their confidence and support.”
Pursuant to a Financial Investment Decision, construction is expected to commence in 2026 and the operational phase anticipated in early 2028.
To accelerate commercial operations, Vecco plans to initially source vanadium pentoxide from third-party suppliers while mine development is underway, allowing early revenue generation from the Townsville plant.
The $150 million QIC Critical Minerals and Battery Technology Fund is a Queensland Government initiative managed by QIC, with earlier capital investments including Alpha HPA’s synthetic sapphire project in Gladstone.
QCMBTF’s advisers for the transaction are BurnVoir Corporate Finance and Allens.
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