Qld joint venture in $3m boost for Australia’s manufacturing capacity

A Queensland joint venture will expand Australia’s manufacturing capabilities after being granted $3 million to scale up production of iron flow battery chemicals.

The partnership of grid-scale battery company Energy Storage Industries – Asia Pacific (ESI) and North Queensland’s Cleveland Bay Chemical Company has been allocated funds to expand the manufacture of the medium of energy storage in iron flow batteries, called electrolyte.

The joint venture’s existing Townsville facility has a pilot plant which has been used to develop the process. This will be expanded from a nominal 3 million litres per annum to 43 million litres. The process is novel and uses Cleveland Bay’s expertise to manufacture high-purity speciality electrolyte.

The Department of State Development and Infrastructure funding also supports a concept study into the manufacture of products involved in the critical minerals supply chain.

Total investment in the existing electrolyte facility and its expansion will be about $20 million, with up to 50 construction jobs and up to 20 operational roles created.

The announcement comes a week after ESI started construction of Australia’s first grid-scale battery manufacturing plant in Maryborough. The breaking of ground followed a $25 million investment by the Queensland Government and a separate $40 million investment by an international firm in ESI.

ESI is a Queensland-based, Australian-owned manufacturer of proven grid-scale battery technology that solves a key problem in the energy transition – how to provide renewable energy overnight.

Cleveland Bay Chemical Company is a locally owned and operated chemical manufacturer based in Townsville. The company seeks opportunities to value-add local raw materials, extending the value chain of Queensland resources for water treatment, advanced materials, agriculture and batteries.

ESI Managing Director Stuart Parry said the Regional Economic Futures Fund money would improve the energy security of all Australians while creating skilled jobs and economic opportunity.

“We’re excited that our partnership with Cleveland Bay Chemical Company will expand production of Australia’s first iron based electrolyte made for commercial batteries,” Mr Parry said. “Crucially, we’re also strengthening the resilience of the supply chain for iron flow batteries and supporting the development of a critical minerals supply chain as we improve energy security for all Australians.”

Cleveland Bay Chemical Company’s Nick Whebell said the manufacturer had developed innovative processes to make the electrolyte, which had significant economic potential for the region.

“Townsville production of electrolyte has the potential to make a real impact in the energy transition to support both domestic and international markets. This initiative will create jobs and economic opportunity for North Queensland while expanding the state’s manufacturing capabilities.”