[Ferro-Alloys.com] The Queensland Critical Minerals and Battery Technology Fund (QCMBTF) will commit up to A$5 million to advance the North Queensland Vanadium Project (NQVP).

The funding will be made as a cornerstone investor in Velox Energy Materials and will pave the way for significant job opportunities.

The Queensland Investment Corporation (QIC) managed Fund's investment will ensure Velox is positioned to become a significant contributor to global critical mineral supply chains, supporting the continued deployment of vanadium redox flow batteries.

QIC State Chief Investment Officer Allison Hill said the decision to become a cornerstone investor was grounded in long-term market confidence in vanadium and the opportunity for economic growth in Queensland.

"Up to two million tonnes of vanadium is required for battery storage to decarbonise industries and communities globally under 2050 net zero targets," Ms Hill said.

"Total global production in 2023 represented approximately five per cent of this figure, so this sizable deficit demonstrates the significant opportunity that projects like NQVP allow Queensland to harness in the next critical minerals resources boom.

"Some of the world's biggest and best vanadium resources are found in Julia Creek, where multiple drill-ready targets across NQVP's 1200 square-kilometre site give Velox distinct advantages in exploration and mineralisation potential.

"The QCMBTF investment provides a pathway for construction to commence within three years, creating more than 50 jobs in early works and 150 jobs extracting the underexplored, prospective vanadium-rich deposits over the expected 30-year mine life."

Located between Mt Isa and the Port of Townsville, NQVP is serviced by the town of Richmond, with access to rail, road, power and skilled workforce. Historic preliminary metallurgy studies indicated the potential for a sizeable, low-cost operating mine that will use conventional mining and refining methods.

Velox Energy Materials President and CEO Simon Coyle said the project was now pushing forward with mining and processing studies.

"The North Queensland Vanadium Project is Velox's flagship project that we are rapidly progressing towards development, having defined a large mineral resource with significant upside," Mr Coyle said.

"Vanadium production in Queensland supports the vanadium redox flow batteries being developed for regional Queensland, using local resources to power Queensland.

"The investment in Velox by the Queensland Critical Minerals and Battery Technology Fund demonstrates the Queensland Government's commitment to the rapidly emerging vanadium sector, along with CopperString 2032 and Queensland Resources Common User Facility."

Completion of QCMBTF's investment is conditional upon satisfaction or waiver of several conditions by December 31, including a requirement that Velox raise a further A$4 million (minimum) in additional funding, excluding QCMBTF's investment.