Critical Minerals Group Secures $2.7M Grant, Advances Vanadium Facility Milestones

Federal Grant Boosts Vanadium Electrolyte Ambitions

Critical Minerals Group Limited (ASX: CMG) has taken a significant step forward in its vanadium battery-grade chemical materials strategy by securing a $2.7 million grant from the Australian Government’s International Partnerships in Critical Minerals (IPICM) program. This funding, matched by CMG, will underpin the commissioning and operation of a vanadium electrolyte manufacturing facility in the City of Logan, Queensland.

The grant not only accelerates the domestic production chain for vanadium electrolytes but also supports extraction and processing activities at the Lindfield Vanadium Project and the Queensland government’s common user facility in Townsville. This strategic collaboration with CMG’s largest shareholder, Idemitsu Australia Pty Ltd, signals a concerted effort to establish a sovereign supply chain for critical battery materials.

Facility Development and EPC Contract Awarded

During the December quarter, CMG secured a long-term lease for its vanadium electrolyte manufacturing site in the City of Logan, a location chosen for its logistical advantages and connectivity to major transport hubs. Complementing this milestone, the company awarded the engineering, procurement, and construction (EPC) contract to Sedgman Pty Limited, a respected player in minerals processing infrastructure. Sedgman commenced design consultations in January 2025, setting the stage for facility construction and operational readiness.

Advancing Long Duration Energy Storage Prospects

CMG has also embarked on a comprehensive review of the Long Duration Energy Storage (LDES) market, focusing on the potential to produce Vanadium Flow Batteries (VFBs) at reduced capital costs. Given the Australian Energy Market Operator’s forecast of a surge in grid energy storage demand, 19 GW by 2030 and 43 GW by 2040, CMG’s integrated supply chain approach could position it as a key player in Australia’s energy transition.

Pilot Plant Success and Environmental Progress

On the technical front, CMG completed pilot plant beneficiation test work with results surpassing bench-scale expectations, particularly in the cyclone processing stage. This data will inform engineering design and process optimisation ahead of the Bankable Feasibility Study. Concurrently, the company advanced environmental and development approvals, submitting a coordinated project declaration application under Queensland’s SDPWO Act. Engagement with government bodies and Traditional Owners continues to ensure regulatory and social licence progress.

Strengthening Leadership and Exploration Initiatives

In a strategic personnel move, CMG appointed Pat Kelly as Chief Operating Officer. With over 30 years of mining and resource sector experience, Kelly’s expertise in bulk commodities and industrial minerals is expected to enhance operational execution. Additionally, CMG submitted a grant application for the Collaborative Exploration Initiative to expand exploration learnings from the Lindfield Project across adjacent tenements, signalling ongoing commitment to resource growth.