Special Report: Australian Vanadium has continued to roll up supply deals for the Australian Vanadium Project in WA by striking an outline deal with US Vanadium.

Australian Vanadium’s (ASX:AVL) memorandum of understanding with US Vanadium sets the stage for a future supply deal for offtake from the company’s project in WA.

“There is an increased emphasis on security and provenance of supply chains globally and Australian Vanadium has been fielding significant investor interest from Europe and the US,” managing director, Vincent Algar, said.

The offtake proposal is for 2,000 tonnes per year of vanadium pentoxide, representing 20 per cent of Australian Vanadium’s planned production from the Project.

A formal supply contract between Australian Vanadium and US Vanadium is expected to be finalised by late 2021.

The company has been promoting global sales of vanadium from its vanadium project for which it is moving closer to a final investment decision.

Vanadium has the status of a critical and strategic metal that was conferred by the US government because of the metal’s importance to US industry, especially defence.


Australian Vanadium has close links with US Vanadium

US consumers of critical metals such as vanadium are actively seeking additional supply.

“The relationship with US Vanadium also validates Australian Vanadium’s strong technical capability and the company’s considered approach to its feasibility studies,” said Algar.

US Vanadium produces and sells a range of specialty chemicals, including the world’s highest purity vanadium pentoxide at 99.6 per cent, from its Arkansas plant.

The US company has strong links with end users in the North American vanadium market.

Australian Vanadium’s technical director Daniel Harris is also a director of US Vanadium, and has wide-ranging experience of working in the international vanadium market.

“Working with the highly experienced team at US Vanadium will give Australian Vanadium the ability to negotiate at the highest level within the vanadium market and leverage the critical mineral narrative with end users,” said Algar.

Australian Vanadium’s namesake vanadium project has good transport links to export routes. Image: company supplied

Diversified approach to supply deals for Australian Vanadium

Australian Vanadium has taken a strategically diversified approach when it comes to striking supply deals for its vanadium production.

A supply deal has also been secured with a Singapore-based vanadium redox flow battery maker, V-Flow Tech.

The company said it recognises China’s dominant role in global vanadium production, as well as the need for supply certainty for non-Chinese customers.

Australian Vanadium has been rolling up off-take deals for its vanadium project.

In September, the company agreed to supply vanadium pentoxide and electrolyte to Chinese battery producer Gui Zhou Collect Energy Century Science and Technology.

The company said at the time that availability of high purity vanadium pentoxide in China is “constrained” because of high demand for vanadium in alloy steel applications.

September also saw the signing of an MOU for offtake and a sales agency agreement with CellCube’s Austrian vanadium redox flow battery manufacturer Enerox GmbH.


This story was developed in collaboration with Australian Vanadium, a Stockhead advertiser at the time of publishing.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.