Energy Storage Industries (ESI), a Brisbane-based manufacturer specializing in iron flow batteries, has secured a substantial $65 million investment to establish Australia’s first grid-scale battery manufacturing plant. The Queensland government, led by the Labor party, has pledged $25 million to ESI, a commitment that has attracted an additional $40 million from a UK-based investment fund, whose identity remains undisclosed.
This financial boost, composed of both debt and equity investments, has enabled ESI to accelerate the development of its $70 million manufacturing facility in Maryborough, located in the Fraser Coast region of Queensland. Preliminary construction has already commenced at the site, with foundations expected to be laid in the coming weeks. ESI anticipates full-scale operations by mid-2029, though initial production is projected to begin as early as 2025.
Stuart Parry, managing director of ESI, highlighted the significance of this investment in advancing Australia’s energy transition. “ESI is a Queensland-based, Australian-owned company that provides a proven solution to a critical challenge in renewable energy: how to deliver grid-scale renewable energy storage for overnight use,” Parry explained. He emphasized that the investment from both the government and private sector will enable Queensland to produce its first grid-scale batteries by the end of 2025.
Parry also noted that ESI aims to achieve an annual production capacity of 400 megawatts (MW) of energy storage by 2029. This amount of storage is equivalent to powering a city the size of Toowoomba each year. The project will also benefit local businesses and create skilled employment in the region by sourcing key components for the batteries from Queensland.
ESI’s iron flow battery technology is based on a simple yet effective combination of iron, salt, and water chemistry, which provides between 8 and 12 hours of energy storage. The flexibility of the technology allows it to be deployed in a variety of configurations, including containerized systems or larger grid-connected warehouses, with installations ranging from 400kWh to over 1GWh.
A standout feature of ESI’s iron flow batteries is their safety and environmental credentials. The batteries are non-flammable, non-toxic, and fully recyclable, making them suitable for deployment in sensitive environments, such as national parks, the Great Barrier Reef, and residential areas. These attributes make the technology an attractive option for areas where environmental impact is a critical concern.
Cameron Dick, Queensland’s Deputy Premier, Treasurer, and Minister for Trade and Investment, lauded the state’s investment in ESI, viewing it as part of a broader strategy to position Queensland as a leader in battery manufacturing. “By partnering with local industries and attracting private capital, Queensland is seizing the opportunities presented by the global transition to decarbonization,” Dick stated. He emphasized that the government’s support for ESI is a critical step toward meeting future clean energy storage demands and capturing significant export potential.
Beyond the economic and environmental benefits, Dick highlighted the potential for job creation. The Maryborough facility is expected to generate more than 270 highly skilled jobs in regional Queensland, contributing to the local economy while addressing the growing need for specialized roles in technology and manufacturing.
This announcement builds on a year of strategic partnerships for ESI, particularly its collaboration with the state-owned energy generation company Stanwell. In 2023, Stanwell and ESI revealed plans for a 1MW/10MWh iron flow battery system to be located adjacent to the Stanwell Power Station. This initial installation is seen as a precursor to a larger 150MW battery project that Stanwell plans to complete by the end of the decade.
The development of ESI’s battery manufacturing facility represents a significant step forward for Queensland’s renewable energy sector, providing not only a solution to the storage of grid-scale renewable energy but also an opportunity for the state to emerge as a key player in the global energy transition. As Queensland strengthens its commitment to clean energy, the partnership between government, private investors, and local industry signals a promising future for renewable energy storage and economic growth in the region.
