Queensland Pacific Metals has lined up $900 million in indicative debt financing commitments for its Townsville battery materials plant, as Export Development Canada doubles its potential backing to $400 million.

The interest from Canada’s export credit agency is linked to potential equipment and services supply from Canadian companies for the construction of the Townsville Energy Chemicals Hub (TECH) project.

Meanwhile, the Northern Australia Infrastructure Facility is continuing its due diligence, with a potential debt financing commitment of up to $250 million.

These two combined with the previous indicative debt financing commitment from Export Finance Australia of $250 million mean QPM now has total potential indicative debt financing commitments of up to $900 million.

“We are delighted at the response received to date from financiers, in particular Export Development Canada, and their willingness to consider debt funding for the TECH Project,” QPM managing director and chief executive officer Dr Stephen Grocott said.

“Our strategy has been to target government-backed lending agencies and we greatly appreciate the indicative support received to date. We look forward to advancing through due diligence and through to credit approvals.”

QPM and its debt advisor KPMG Corporate Finance continue to progress discussions with other lenders including K-Sure (Korea Trade Insurance Corporation), which previously provided a letter of interest.

The TECH proponent released details late last year from its advanced feasibility study for Stage 1 of the project and a scoping study for a Stage 2 expansion.

The first stage is expected to cost about $2.1 billion to build, while expanding to Stage 2 would take another $1.75 billion.

The TECH project site is located to the south of Townsville in the Lansdown Eco-Industrial Precinct.