Australia boosts battery manufacturing with new Graphinex facility in Townsville

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The Graphinex Townsville Battery Anode Demonstration Facility. Image credit: Graphinex' LinkedIn

Graphinex has officially opened its new Battery Anode Demonstration Facility in Townsville, marking a significant step in advancing Australia’s manufacturing capabilities in the battery materials sector. 

The launch was attended by Federal Assistant Minister for Resources and Senator for Queensland Anthony Chisholm, alongside Queensland Minister for Natural Resources and Mines Dale Last.

The facility, supported by a $3 million grant from the Federal Government and a $2 million grant from the Queensland Government, aims to process graphite ore sourced from Graphinex’s Esmeralda Graphite deposit, located about 500 kilometres west of Townsville. 

The goal is to produce ultra-high-performance Battery Anode Material (BAM) for the global battery manufacturing market.

Assistant Minister Chisholm said the project exemplifies Australia’s commitment to building its domestic battery manufacturing industry. 

“We’re not just focused on extraction, we’re also building value here in Australia – creating more jobs, stronger supply chains, and advanced technologies that will power the next generation of clean energy systems,” he said.

The Australian Government’s support is part of its broader Critical Minerals Strategy 2023–2030 and National Battery Strategy, both aimed at strengthening the country’s manufacturing sector and economic resilience. 

Since February 2024, the International Partnerships for Critical Minerals Program has allocated $40 million in funding to projects aligned with these national strategies.

Graphite, a key component in lithium-ion batteries and defence technologies, is expected to see global demand rise by 140 per cent by 2030. 

The new Townsville facility is expected to produce 300 tonnes of ultra-high energy graphite anode material per year, helping to meet this demand while positioning regional Queensland as a hub for advanced manufacturing.

Graphinex Managing Director Art Malone said the launch reflects the impact of coordinated support from both government and industry. 

“This milestone has been made possible with support from the Australian Federal and Queensland State Governments and institutional backing from our international partners, Idemitsu and Baramulti,” he said.

Graphinex Chairman Tom Northcott emphasised the importance of domestic capability in critical minerals manufacturing. “This is about more than graphite or vanadium – it’s about delivering value-added manufacturing, regional jobs, and national resilience in the clean energy transition,” he said.

The facility also reflects growing global interest in Australia’s clean energy supply chain. Steve Kovac, CEO of Idemitsu Australia, described the facility as “leading the charge in the global clean energy transition and shaping the future of energy storage solutions.”