$2m grant for vanadium electrolyte demonstration plant

Critical Minerals Group (CMG) (ASX: CMG) has received a $2m grant from the Queensland Government under the Queensland Critical Minerals and Battery Technology Fund.

The grant will partially fund the development of a vanadium electrolyte manufacturing demonstration plant consisting of a single 12-cell electrolyser unit that has the capacity to produce one million litres of vanadium electrolyte per year.

The South East Queensland facility will produce vanadium electrolyte suitable for use in vanadium redox flow batteries.

CMG managing director Scott Winter says the company is proud to be supported by the Queensland Government to service the growing demands of Australia’s vanadium industry and bring downstream vanadium electrolyte manufacturing, job growth and economic opportunities to the region.

“CMG’s strategy is to be a premium producer of vanadium battery products and

we are excited to be starting the downstream manufacturing part of that strategy,” he said.

“With the global demand for vanadium increasing each year, CMG’s vanadium electrolyte manufacturing demonstration plant is intended to contribute to the sustainable use of Queensland’s rich mineral deposits and to increase the production and supply of vanadium redox flow batteries.

“CMG will be well positioned to support the deployment of medium to long term vanadium battery storage in the renewable energy zones being established in key areas of Queensland.

“The Queensland Government continues to demonstrate its commitment to the critical minerals sector, and we look forward to working with the State to strengthen Queensland’s position in the global vanadium industry.”

Queensland Deputy Premier, Treasurer and Trade and Investment Minister Cameron Dick says the State is fortunate to have significant deposits of the necessary critical minerals and wants to be involved in every step through the value chain — from pit to product.

“In 2023, global demand for vanadium was 130,000t and is expected to grow to

180,000t by 2030, far exceeding the current supply,” he said.

“CMG joins other local battery companies in benefiting from investment from our Queensland Critical Mineral and Battery Technology Fund to take their ideas and production to the next level to meet this demand.

“It’s another excellent example of how our government is supercharging Queensland’s battery industry and delivering highly skilled jobs for Queenslanders.”

The grant will enable CMG to commence project planning and will fast-track the development of the facility, which is intended to be completed, installed and commissioned by the end of 2025.