QIC makes $5m cornerstone investment in Velox to support battery storage supply chain

The QIC-managed Queensland Critical Minerals and Battery Technology Fund will commit the funds as a cornerstone investor in the Perth-based Velox Energy Materials which is developing the project near Julia Creek in an area known as Australia’s vanadium hub.

The move is part of a dual listing for Velox in Canada and Australia which will be accompanied by a capital raising of between $8 million and $10 million. The QIC investment is conditional on Velox raising at least an additional $4 million.

The Queensland Government’s investment arm says the funding will assist Velox in becoming a significant contributor to global critical mineral supply chains, supporting the continued deployment of vanadium redox flow batteries.

Vanadium is a key component in the production of vanadium redox flow batteries which are typically used for renewable energy grid storage facilities.

 “Up to two million tonnes of vanadium is required for battery storage to decarbonise industries and communities globally under 2050 net zero targets,” says QIC state chief investment officer Allison Hill.

“Total global production in 2023 represented approximately five per cent of this figure, so this sizable deficit demonstrates the significant opportunity that projects like NQVP allow Queensland to harness in the next critical minerals resources boom.

“Some of the world's biggest and best vanadium resources are found in Julia Creek, where multiple drill-ready targets across NQVP’s 1,200 square-kilometre site give Velox distinct advantages in exploration and mineralisation potential.

“The QCMBTF investment provides a pathway for construction to commence within three years, creating more than 50 jobs in early works and 150 jobs extracting the underexplored, prospective vanadium-rich deposits over the expected 30-year mine life.”

Velox Energy Materials’ project is located about 500km southwest of Townsville and is serviced by the town of Richmond, with access to rail, road, power and skilled workforce.

QIC says historic preliminary metallurgy studies indicate the potential for a sizeable, low-cost operating mine that will use conventional mining and refining methods.

Velox Energy Materials CEO Simon Coyle says the project is currently progressing with mining and processing studies under way.

“The North Queensland Vanadium Project is Velox’s flagship project that we are rapidly progressing towards development, having defined a large mineral resource with significant upside,” says Coyle.

“Vanadium production in Queensland supports the vanadium redox flow batteries being developed for regional Queensland, using local resources to power Queensland.

“The investment in Velox by the Queensland Critical Minerals and Battery Technology Fund demonstrates the Queensland Government’s commitment to the rapidly emerging vanadium sector, along with CopperString 2032 and Queensland Resources Common User Facility.

“There really isn’t a better place in the world to be developing a vanadium project than in Queensland.”

Velox notes that it has applied to the ASX for in-principle advice on its suitability for admission to the official list of the ASX, but is yet to receive any confirmation.

The capital raising is also intended to be used by Velox to explore commercialisation opportunities for the Kotai Hydrogen Project in Queensland.

The company says that once the dual listing is completed, the QIC fund will hold between 15 and 19 per cent of Velox.