The Australian Financial Review - Coalition claims PsiQuantum deal falling behind

A major loan facility for the Albanese government’s $1 billion scheme to build a quantum supercomputer in Brisbane is yet to be drawn down, prompting the Coalition to claim US-based start-up PsiQuantum has missed project milestones, casting more doubt on the project.

It was revealed during Senate estimates last week that $275 million in federal loan funding earmarked for the project was yet to be drawn down and PsiQuantum had told the government’s export finance body it was still “working through” conditions to satisfy financing.

Opposition spokesman Paul Fletcher says the deal to build a world-leading super computer is falling behind schedule.  

Investment in the form of a convertible note had also not yet been converted into equity, which Opposition science spokesman Paul Fletcher said was due to the US-based company failing to meet a deadline to run an external funding round to raise further investments.

But a spokesman for PsiQuantum emphatically denied this claim, insisting a funding deadline had not been missed.

Industry and Science Minister Ed Husic’s office dismissed suggestions the project was falling behind schedule, but would not comment on contractual terms because they were commercial-in-confidence.

Under an agreement announced in April, the federal and Queensland governments will each contribute $470 million through share purchases, grants and loans. In return, PsiQuantum has agreed to locate its regional headquarters in the state and operate its computers here.

It is a key pillar of the Albanese government’s Future Made in Australia policy linking technological development to transitioning the economy to net zero energy.

Mr Fletcher said the deal looked “shakier and shakier by the day” after the newly elected Queensland Liberal-National government confirmed this week it was reviewing the deal.

“Alarm bells should be ringing given key financial milestones haven’t yet been reached, putting the project under a cloud,” Mr Fletcher said.

“A parliamentary inquiry is needed to find out what went wrong.”

A spokesman for Mr Husic said it was crucial the government forge ahead with the deal to ensure Australia doesn’t squander its advantage in the highly technical industry.

“Paul Fletcher will invent any excuse to talk down the work of the Australians working to supercharge Aussie industry and strengthen national security, just like the opposition only ever talks about Aussie manufacturing to talk it down,” he said.

“The investment was subject to rigorous, lengthy due diligence covering legal, technical, financial and national security aspects.”