Vanadium gets a boost as Idemitsu joins the rush to Julia Creek
Japanese company Idemitsu, which sold its stake in the Ensham coal mine last month, has made a $13 million bet on batteries and Queensland’s burgeoning vanadium industry.
Idemitsu, better known for its coal investments and sponsorship of motorcycle racing, will join the rush to Julia Creek (AAP Image/Joe Castro)
On the same day that Senex Energy, partly owned by Gina Rinehart, signed up with CS Energy to develop hydrogen at the Kogan Power Station, Idemitsu said it had taken a 15 per cent stake in Vecco Group which is developing the Debella Critical Minerals project near Julia Creek.
Earlier this year, Idemitsu also took a minor stake in a WA based lithium project.
It initially took a $5 million stake in Vecco in October, 2022, but added $8.2 million today and is underwriting Vecco’s second round of capital raising.
Vecco’s $10 million capital raising would be used for feasibility studies, environmental approvals and mining lease applications.
A portion of the funds would also go towards Vecco’s downstream vanadium electrolyte business.
The inclusion of Idemitsu adds to the integrity of the vanadium sector which is based around the world class Julia Creek deposits where a host of companies are vying to get projects off the ground, including QEM and Multicom.
Vanadium batteries are considered far superior to lithium batteries but are too heavy for phones and cars, but ideal for stationary applications such as grid-scale storage.
The State Government has recognised the potential of vanadium by funding a vanadium pilot processing plant in Townsville.
Idemitsu Australia chief executive Steve Kovac said the funding was an exciting move “as we continue to develop a critical minerals business and respond to the global energy transition”
“Vecco’s Debella project is a great asset that will continue to reveal upside. As global demand for critical minerals and rare earths grow, we continue to target investment opportunities with a focus on energy-related minerals including lithium, vanadium, copper and cobalt.
“We look forward to working with the board and management of Vecco Group as it establishes itself as a leading critical minerals business for batteries.”
Earlier this year Italian energy company Coeclerici also took an unspecified stake in Vecco.
Vecco managing director Thomas Northcott said the production of vanadium, rare earth elements and high purity alumina would integrate with the company’s battery electrolyte manufacturing facility which would create about 600 jobs.
Stage One of the battery electrolyte manufacturing facility development would produce approximately 35MWh a year of vanadium electrolyte, with stage two increasing capacity to more than 350MWh.
