Study backs $3b Townsville battery plant development
lithium-ion battery cell manufacturing facility in Townsville.
The total construction cost for the plant would be more than $3 billion, according to an independent review by Townsville-based quantity surveyors Rider Levett Bucknall (RLB).
However the project would be phased over three stages of 6 GWhs each, reducing the upfront capital expenditure to $1.12 billion for the first stage and allowing for expansion to occur in line with developments in technology and the market.
Stage one construction is flagged to begin next year.
Magnis Energy Technologies, which owns one third of the venture, released the study findings today after the work was fast-tracked with assistanmce from a $3.1 million State Government grant.
The study demonstrated sound financial viability on a project basis with an NPV (net present value) of $2.55 billion and 21 per cent internal rate of return, it said.
Project to generate 1150 operational rolesThe results also showed there would be about 1150 jobs created in full plant operations, including 90 office staff.
The plant would be built at the Lansdown Industrial Precinct south of Townsville, where a 357ha site has been earmarked for teh development.
The proponents say iM3TSV’s manufacturing process was developed with strategic partners and leading vendors of manufacturing equipment including Durr Megtec and Siemens.
Ausenco was responsible for combining the individual vendor packages into a fully integrated production process.
Next steps towards developmentMagnis says the next phase of the project is now underway with the key milestones being:
• Development approvals – Over the coming months a development application will be completed and submitted to Townsville City Council for formal consideration;
• Project funding – iM3TSV’s project funding strategy will be executed with advice from NAB who are the exclusive financial advisor to the project; and
• Testing and market development – iM3TSV will commence battery cell production testing in a commercial setting at equipment vendor facilities. iM3 battery cells will be provided to customers for independent evaluation and qualification as a precursor to procuring offtake contracts.