Australian Vanadium has signed a deal for the supply of vanadium oxides and a low-cost vanadium electrolyte manufacturing technology.

Under the memorandum of understanding with specialty chemical producer U.S. Vanadium (USV), USV will supply vanadium oxides to produce vanadium electrolyte in Australia and licence USV’s technology to convert vanadium oxides to vanadium electrolyte.

Vanadium electrolyte is the key ingredient of vanadium redox flow batteries (VRFBs), which are safer than lithium-ion batteries and are well suited for applications in Australian conditions.

Australian Vanadium (ASX:AVL) notes that the technology licence, which is exclusive for Australia and New Zealand, will allow it to start local vanadium electrolyte production to support growing interest in the batteries.

The timing is just right given that the company was recently awarded a $3.69m grant from the Australian Government’s Modern Manufacturing Initiative to develop a high purity vanadium production circuit and build and operate a 33MWh capacity vanadium electrolyte plant.

The grant also covers the production of locally assembled prototype VRFB systems for domestic and stand-alone remote power systems.

Building on existing relationship

The new MoU complements an existing MoU that AVL has with USV regarding future offtake of vanadium from the Australian Vanadium Project for use in the US critical metals market.

Both MoUs will lead to a binding mutual vanadium supply and technology licence agreement between the two companies.

“Having a strong relationship with a company of USV’s calibre in the vanadium market enables AVL to secure a supply of the highest quality vanadium oxides, prior to bringing the Australian Vanadium Project into production,” managing director Vincent Algar said.

“This will allow us to move quickly to build a vanadium electrolyte plant here in Australia to supply the growing VRFB market.”

He adds that the planned vanadium electrolyte plant will enable the company to secure supply deals for Australian VRFB implementations.

“Our 100% owned subsidiary VSUN Energy has already identified multiple projects suitable for locally produced vanadium electrolyte,” Algar explained.

“This vertical integration strategy puts AVL in a strong position to secure financing for the project and provides Australian employment opportunities in the downstream battery supply chain.”




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


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