Queensland invests $25 million in grid-scale battery plant, expects production by 2026

The Queensland government has invested $25 million in debt and equity – with a further $40 million contributed from an unnamed UK investment firm – which it says will see Energy Storage Industries – Asia Pacific (ESI) establish the nation’s first grid-scale battery factory.

According to a statement on Tuesday, ESI is building the plant at Maryborough, where early works are underway. A ground-breaking  event took place in July 2022

It is expected to begin production in late-2025 and be “fully-operational by mid-2029”, create as many as 273 full-time jobs, and will produce iron-flow batteries for long-duration energy storage based on technology licenced from US company ESS, Inc.

Iron flow batteries use a liquid electrolyte made of iron, salt and water, separated by a membrane.

ESS is listed on the New York Stock Exchange, and its website describes its technology as allowing “for unlimited cycling with zero capacity degradation over a 25-year design life.”

Pacific Managing Director of ESI, Stuart Parry, said the battery technology solved the key problem of providing renewable grid-scale energy overnight. 

“Thanks to this far-sighted support from Treasury and private investors, the first production of Australian-made grid-scale batteries will take place in Queensland by the end of 2025,” said Parry. 

“ESI is targeting the delivery of 400 megawatts (MW) of energy storage annually from 2029 – enough to power a city the size of Toowoomba each year. 

Parry said that “key battery components” will be sourced from throughout Queensland.

State trade and investment minister Cameron Dick said, “By partnering with local industry and attracting private capital, Queensland is well-placed to seize the incredible opportunities presented by the world’s decarbonisation. 

“Our investment in ESI is part of our commitment to firmly establish a new battery manufacturing industry right here in Queensland.” 

Picture: credit Austrade

Further reading

ESI begins construction of Queensland battery plant

Australian Vanadium backed to produce critical battery materials

ESI’s Australian batteries feature in new Queensland investment