Queensland’s government has taken another step towards making a lithium-ion battery factory in Townsville a reality.
The Queensland government has made further progress in a potential AU$2-billion deal that would see a lithium-ion battery factory built and operated in Townsville.
On Thursday (August 23), an assistance agreement was signed between the Queensland government and Imperium 3, an international joint venture consisting of Boston Energy and Innovation, Magnis Resources (ASX:MNS) and Charge CCCV (C4V).
Premier Annastacia Palaszczuk commented on the signing, highlighting the creation of new jobs that will come with the construction of the battery factory.
“Today’s signing is great news for Townsville, and Queensland as a whole, as it means we are one step closer to making this facility a reality, along with the jobs it would bring to Townsville,” she said.
Palaszczuk added, “[i]n line with our Advance Queensland agenda, we are determined to make the most of the opportunities for the future, and by assisting to progress the feasibility study of this project, we hope to leverage considerable private sector investment into regional Queensland.”
The premier, whose government contributed AU$3.1 million to the project’s feasibility study, elaborated on how the factory will help Queensland further contribute to the renewable energy space.
“Battery storage solutions are fundamental to making renewable energy reliable, and Imperium 3’s project would be supplying into a rapidly expanding market and would further develop Queensland’s advanced manufacturing capabilities in the renewable energy market,” she noted.
Cameron Dick, minister for state development, manufacturing, infrastructure and planning, commented that Imperium 3 is collaborating with one of his department’s senior teams to help deliver the feasibility study for the project; he expects it will be completed next year.
“With today’s signing, we are another step closer to making this major manufacturing project a reality for Townsville, and following the feasibility study completion, we expect Imperium 3 will make the final investment decision by mid-2020,” he said.
Coralee O’Rourke, minister for communities and member for Mundingburra, expressed similar positivity about what the factory could accomplish for both Townsville and Queensland’s economies.
“If the feasibility study is positive and if the full-scale proposed development is realised, this battery manufacturing facility will deliver a huge economic boost to the Townsville region, and more broadly to Queensland,” O’Rourke commented in the release.
Aside from the Townsville battery factory, Imperium 3 is also working on a similar operation in New York.
The consortium’s three members each play different roles — Boston Energy is an investment house responsible for financing and fostering sustainable energy solutions; Magnis specializes in end-to-end sourcing of raw materials for lithium-ion batteries; and C4V has expertise and patented discoveries in lithium-ion battery composition and manufacturing.
The New York factory is expected to come online in 2019, with the Townsville one following in 2021 assuming a positive investment decision.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Magnis Resources is a client of the Investing News Network. This article is not paid-for content.