- Australian Vanadium (AVL) wins a $3.69 million grant from the Federal Government to design, build and operate a vanadium electrolyte plant
- AVL will develop vanadium redox flow batteries (VRFBs) which are easier to make as they need only a single metal component to store energy for longer
- The company is supplying its vanadium pentoxide from its project which is one of the highest-grade vanadium projects in the world
- This funding aligns with the Government's 10-year plan to transform Australia into a resources technology and critical minerals processing hub
- Company shares are up 11.1 per cent and trading at 2 cents at 12:55 pm AEST
Australian Vanadium (AVL) has been awarded a manufacturing grant from the Federal Government.
The company will use the $3.69 million funding to produce vanadium electrolyte to support the Australian energy storage market.
This aligns with the Australian Government's Resources Technology and Critical Minerals Processing National Manufacturing Priority roadmap.
Essentially, the Government has a staged 10-year plan to transform Australia into a regional hub for resources technology and critical minerals processing.
Australian Vanadium will use the money to design, build and operate a vanadium battery electrolyte plant in Western Australia to roll out vanadium redox flow batteries (VRFBs).
The VRFBs are reportedly easier to make than other batteries as they require only a single metal component, which is vanadium, to store energy for a longer period.
Vanadium electrolyte can be leased to reduce capital costs and can be 100 per cent reused or recycled at the end of the battery's mechanical life.
Managing Director Vincent Algar welcomed the funding.
"The grant will provide support to AVL to achieve production of high-purity vanadium pentoxide, which is a key input to vanadium-titanium master alloys for critical steel applications and vanadium electrolyte for batteries," Mr Algar said.
"The grant will allow AVL to produce vanadium electrolyte commercially to support the development of the long duration energy storage market, which will play a key role in future grid stability in this renewable energy generation era."
Australian Vanadium plans to supply vanadium pentoxide from its eponymous project to manufacture vanadium electrolyte, which will then be supplied to VRFB projects in Australia and the Asia Pacific.
The Australian Vanadium Project is currently one of the highest-grade vanadium projects in the world and has a JORC resource of 208.2 million tonnes at 0.74 per cent vanadium pentoxide.
The manufacturing project must be fully completed by March 31 2024 and is expected to cost $7.4 million.
Company shares were up 11.1 per cent and trading at 2 cents at 12:55 pm AEST.