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Australia's Genex Power signs deal with Tesla for its Queensland project

Credit: REUTERS/SONALI PAUL

Australia's Genex Power said on Friday it signed a deal with Tesla Inc's local unit to develop its Bouldercombe battery project in Queensland using the U.S.-based electric carmaker's lithium-ion battery technology.

Oct 1 (Reuters) - Australia's Genex Power GNX.AX said on Friday it signed a deal with Tesla Inc's TSLA.O local unit to develop its Bouldercombe battery project in Queensland using the U.S.-based electric carmaker's lithium-ion battery technology.

The renewable energy firm said the project will comprise 40 of Tesla's utility-scale energy storage solutions, also known as megapacks, and be fully operational in the first half of 2023.

Australian-listed lithium miners are benefiting from increasing prices of lithium amid a sharp rise in demand for the metal considered critical, and used in a wide range of applications including in batteries of electric vehicles.

Genex, which expects to make a final investment decision on the project in coming months, said it was in advanced discussions with a party for off-take agreements and securing project finance.

Earlier this week, safety regulators in Victoria cleared the so-called Victoria Big Battery project, run by French renewables firm Neoen SA NEOEN.PA, to resume testing, months after a fire broke out in a Tesla's megapack battery unit.

The financial close of the Bouldercombe project is expected by the first quarter of calendar year 2022, the Australian company said.

(Reporting by Tejaswi Marthi in Bengaluru; Editing by Sherry Jacob-Phillips)

((Tejaswi.Marthi@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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