Queensland Pacific Metals Ltd (QPM) has been awarded an $8 million grant from the Australian federal government to advance its TECH Project, a critical minerals initiative aimed at producing high-quality battery materials.
The funding comes through the International Partnerships in Critical Minerals program, signalling strong government support for domestic battery supply chain development.
The grant, announced on Friday, is contingent upon QPM securing matched funding and agreeing on a specific project scope.
This financial boost marks a significant milestone for the company as it works to complete the commercial validation phase of the TECH Project.
Dr Stephen Grocott, QPM’s Non-Executive Director, expressed gratitude for the government’s support, stating: “This grant is a testament to the attractiveness of the TECH Project for high quality, excellent ESG battery materials production.”
The funds will be directed towards crucial test work, piloting, and engineering studies necessary to produce a comprehensive Bankable Feasibility Study (BFS).
This final stage of validation is expected to de-risk the project further and attract potential investors and partners.
QPM is currently in discussions with commercial partners and the Queensland government to secure the additional funding required to match the federal grant.
The company has emphasised that this funding will be independently sourced, aligning with its strategic focus on growing its energy business without impacting ongoing operations.
The TECH Project’s future ownership structure remains flexible, with QPM considering options such as joint ventures or the creation of a separate entity to house the project.
This approach aims to ensure that expenditure on the TECH Project does not affect the company’s core Gas and Energy Business.
As the global demand for battery materials continues to rise, initiatives like the TECH Project are becoming increasingly crucial.
The Australian government’s support through this grant underscores the strategic importance of developing domestic critical mineral capabilities in the face of growing international competition.
Industry observers will be closely watching QPM’s progress as it works to secure the matched funding and advance the TECH Project towards commercial reality.
The success of this venture could have significant implications for Australia’s position in the global battery supply chain.