$3bn QLD challenge to WA’s ‘battery valley’ hopes

Magnis Energy Technologies has unveiled the feasibility study for Australia's first battery manufacturing plant near Townsville, which could put a dent in Western Australia’s ambition to establish the country’s primary battery minerals processing and manufacturing hub.

The feasibility study assessed plans for developing a 18 gigawatt hours lithium-ion manufacturing plant 40 kilometres south of Townsville, across three stages, with the first stage planned to cost $1.12 billion out of the $3 billion total.

The project is owned by a constrium called Imperium3 Townsville, which Sydney-based Magnis has a one third stake in along with US-based companies C4V LLC New York and Boston Energy and Innovation.

The project has a net present value of of $2.55 billion and 21 per cent internal rate of return.

At full capacity the project is expected to create 1150 operational jobs.

Stage 1 operations are expected to commence in late-2021.

The consortium is currently finalising approvals to submit to the Townsville City Council and has hired National Australia Bank as financial advisor to help procure funding for the project.

The Queensland state government gave the project a $3.1 million grant in June last year, and the consortium said it is continuing to consult with the government.

The announcement comes amid discussion over WA’s potential to establishing a ‘battery valley’.

At a Business News Success and Leadership breakfast last week, Nickel West asset president Eddy Haegel said there was a significant opportunity for nickel and lithium miners in WA to move up the processing chain in battery production.

“As the price of batteries comes down, the opportunity to manufacture batteries for home use becomes enormous,” Mr Haegel said.

“And WA would be a terrific place to do that.”

Mr Haegel said the only concrete plan for a complete battery manufacturing plant in Australia at the moment was Imperium3 Townsville’s project.

Last month, Kibaran Resources welcomed state government support in the development of its planned $33.5 million plant in Kwinana, which aims to produce battery-grade graphite.

Perth-headquartered Pilbara Metals Group is planning a $40 million to $50 million manganese sulphate plant in East Rockingham, with an option on 10 hectares of land with LandCorp.

BHP's Nicket West division is building a $55 million nickel sulphate processing plant at its Kwinana refinery.

Also in Kwinana, Magellan Power has plans to manufacture battery modules for households and utilities.