Canada’s official export credit agency is looking at stumping up $200 million to help develop the TECH battery materials plant in North Queensland.

Queensland Pacific Metals reported the interest from Export Development Canada in a debt funding update for the Townsville project.

It comes after news last month that the company had secured all key permits required to operate Stage 1 of the plant, expected to cost about $2 billion to build.

Queensland Pacific Metals said EDC’s interest was linked to the potential for Canadian companies to supply equipment and services for the construction of the TECH Project.

EDC’s financing is subject to the successful completion of its due diligence process and underwriting conditions.

QPM is also continuing discussions with Export Finance Australia (EFA) and the Northern Australian Infrastructure Facility (NAIF) for backing, as well as with other international government agencies and commercial lenders.

It has received a $250 million indicative financing letter of interest from EFA and an indicative letter of interest and support from Korea Trade Insurance Corporation (K-Sure).

The project also has support from major vehicle manufacturer General Motors, which is set to invest up to $108 million.

It sees TECH as an opportunity to secure a new source of cost-competitive nickel and cobalt for its Ultium battery cells.

First production is scheduled for late 2025 at the site, within the Lansdown Eco-Industrial Precinct. 

The plant would process about 1.6 million wet metric tonnes of ore per annum to produce about 16,000t of nickel metal and 1750t of cobalt metal, both in sulfate form, as well as other valuable co-products.