- 01AVL secures up to $15m in WA funding for an electrolyte plant.
- 02Grant covers up to 50% of eligible costs; AVL funds the rest.
- 03Proposed V-NOMAD facility targets gigawatt-hour flow battery projects.
Australian Vanadium (ASX: AVL) has signed a funding agreement with the Western Australian state government for up to $15 million to help establish a relocatable vanadium electrolyte manufacturing facility.
The support, which comes through the Investment Attraction Fund, will contribute to the design, construction, and commissioning of the first proposed deployment of its V-NOMAD technology platform.
Under the agreement, the state will meet up to 50% of eligible project costs, capped at $15m, with Australian Vanadium responsible for funding the balance.
Payments are tied to the agreement’s conditions and applicable milestones, while the proposed facility is intended to supply electrolyte for large-scale vanadium flow battery (VFB) energy storage projects.
Large Manufacturing Capacity
The V-NOMAD platform is Australian Vanadium’s independently developed relocatable manufacturing system, designed to operate alongside VFB installations rather than requiring electrolyte production at a fixed central facility.
Locating production close to energy storage projects is intended to reduce electrolyte costs and support the deployment of larger batteries.
The proposed facility would expand the group’s existing manufacturing capability to a scale capable of supporting gigawatt-hour energy storage projects.
Its development remains proposed, with the government’s contribution dependent on eligible expenditure and the achievement of the applicable project milestones.
Vanadium and Energy Storage
The grant fits Australian Vanadium’s strategy of connecting its WA vanadium resource with downstream electrolyte manufacturing and battery deployment.
Its Australian Vanadium Project at Gabanintha contains a reported mineral resource of 395.4 million tonnes at 0.77% vanadium pentoxide, including a high-grade zone of 173.2Mt at 1.09%.
The group’s wholly owned subsidiary VSUN Energy develops opportunities for long-duration energy storage using VFB systems in the Australian market.
The proposed manufacturing facility is intended to support those opportunities while broadening the company’s capacity to participate in the downstream vanadium supply chain.
Next Development Stage
“The awarding of this grant is an important milestone for AVL and recognises the progress we have made in developing vanadium electrolyte manufacturing capability in WA,” chief executive officer Graham Arvidson said.
“We thank the Western Australian government for its continued support for the development of domestic vanadium supply chains.”
Mr Arvidson identified the proposed manufacturing system as part of a broader strategy spanning local vanadium production, electrolyte processing, and utility-scale battery projects.
The company’s immediate task is to progress the design, construction, and commissioning of the proposed facility in line with the funding agreement’s milestones and its planned initial manufacturing expansion.
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