The Queensland Government says manufacturing is set to play a central role in the state’s critical minerals ambitions, following the opening of what it describes as Australia’s first facility to convert raw graphite into battery-ready material in Townsville.
According to the government, the demonstration plant, operated by Graphinex, forms part of a broader push to strengthen Queensland’s position in the global supply chain by moving further into downstream manufacturing. The facility processes graphite from the company’s Esmeralda project in North West Queensland into anodes used in lithium-ion batteries.
The government said it had streamlined approvals for the project after declaring the Esmeralda Graphite Project a Prescribed Project, a move it says could support more than 200 regional jobs. It also pointed to a $1.3 billion Letter of Interest from the Export-Import Bank of the United States under the US-Australia Critical Minerals Framework as evidence of international backing.
Premier David Crisafulli said the state was well positioned to capitalise on global demand for critical minerals and related manufacturing.
“The U.S has opened the door, and Queensland is ready to walk through it with shovel-ready critical minerals projects,” he said, adding the government would continue to pursue funding opportunities to advance investment-ready developments.
Minister for Natural Resources and Mines Dale Last said the project demonstrated a shift toward higher-value manufacturing.
“Queensland is not just exporting raw materials, we are turning them into high-value products that are in demand around the world,” he said. “This is what pit-to-processing-to-product could look like.”
Graphinex managing director Art Malone described the facility as a milestone for both the company and the state, citing its role in establishing a “fully integrated, secure pathway from resource to advanced manufacturing.”
The Queensland Government is also calling on the Federal Government to support funding for four additional critical minerals projects, including upgrades to the Mt Isa Rail Line and expansions of processing capabilities in Townsville and Mackay.
The facility is expected to supply battery anodes for use in electric vehicles, drones and robotics, as Queensland seeks to expand its role in advanced manufacturing linked to the global energy transition.
