Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has celebrated the official opening of its vanadium electrolyte manufacturing facility in Wangara, Western Australia.
The event, addressed by Federal Resources Minister Madeleine King, marks a significant milestone in the company's journey from mining and exploration to battery technology.
An assembly of prominent figures from local, state and federal governments were also in attendance.
Deposit forms the backbone
AVL's world-class vanadium deposit, south of Meekatharra, forms the backbone of this venture.
The facility, which has the capacity to produce up to 33 Megawatt-hours of high-purity electrolyte annually, has been built on the back of the company’s mining success and is expected to meet the increasing demands of the vanadium flow battery (VFB) market.
The fully commercialised VFBs produced at the facility will offer benefits like high local content, cost-competitiveness, non-flammability and long lifespans exceeding 25 years.
WA-based engineering company Primero Group, a subsidiary of NRW Holdings, saw it through a safe and timely construction.
A highlight of the facility is the display of a 78kW/220kWh VFB by Invinity Energy Systems, destined for a Horizon Power project in Kununurra, alongside a prototype 5kW/15kWh residential VFB.
Back in 2021, AVL was awarded a $3.69 million Federal Government grant.
Part of that funding was allocated to building and operating a commercial vanadium electrolyte manufacturing facility in Western Australia to support the commercialisation of VFBs and the design of the prototype residential battery.
The facility's design, leveraging US Vanadium LLC’s (USV) technology, secures AVL an exclusive licence for Australia and New Zealand, enhancing production efficiency and de-risking start-up challenges.
Vanadium prized by government
Vanadium's role extends beyond battery technology to aerospace titanium alloys and high-strength structural steel applications, including military equipment. Its addition to steel not only strengthens structures but also reduces carbon emissions by lessening material usage.
The VFB technology, developed in the 1980s at the University of New South Wales, has seen rapid adoption, especially in China, which leads in manufacturing and installation.
The use of vanadium in VFBs, a mere 1% of global production in 2019, has surged to 10% and is projected to dominate more than half of the global supply by the decade's end.
With a strategy extending from mining in Meekatharra to processing near Geraldton, AVL envisions a comprehensive 'pit to battery' approach.
The strategy is set to contribute around 5% to the current global vanadium supply.
“Vanadium flow batteries were invented in Australia, and Australian vanadium will play a key role in the energy transition,” Minister King said at the event.
“Vanadium production is highly concentrated internationally, and it is on Australia’s Critical Minerals List.
“The Australian Government supports critical minerals projects through measures including the Critical Minerals Facility and the Northern Australia Infrastructure Fund.”