The Queensland government has announced it will provide up to $3.1 million for a feasibility study into a proposed $2 billion lithium-ion battery “giga-factory” in Townsville.

The idea is being promoted by an international consortium known as Imperium 3 – led by Boston Energy and Innovation, Magnis Resources and Charge CCCV LLC. A smaller “giga-factory” has also been mooted for Darwin.

Premier Annastacia Palaszczuk said the funding of the $3.1 million feasibility study would move the project one step closer to reality,.

“Battery storage solutions are fundamental to making renewable energy reliable, and Imperium 3’s project would be supplying into a rapidly expanding market and would further develop Queensland’s advanced manufacturing capabilities in the renewable energy market,” she said in a statement.

“We are determined to make the most of the opportunities for the future, and by assisting to progress the feasibility study of this project, we hope to leverage considerable private sector investment into regional Queensland.”

The feasibility study is expected to be completed next year, before a final investment decision in mid-2020.

Minister for Communities and Member for Mundingburra Coralee O’Rourke said: “If the feasibility study is positive and if the full-scale proposed development is realised, this battery manufacturing facility will deliver a huge economic boost to the Townsville region, and more broadly to Queensland.”