Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) made strong progress across its vertically integrated vanadium supply chain during the June 2025 quarter, advancing engineering, permitting and commercialisation efforts from mining through to battery energy storage systems (BESS). Highlights include nearing completion of Phase 2 of the Optimised Feasibility Study (OFS), advancing electrolyte manufacturing plans, and progressing VSUN Energy’s Project Lumina towards a potential investment decision in Q3 CY2025.
“AVL continues to build momentum across all pillars of our vertically integrated strategy, with significant progress made this quarter in engineering, permitting and downstream commercial readiness. This work continues to support our ambition to become a globally competitive supplier of battery-grade vanadium products and energy storage solutions," CEO Graham Arvidson said.
“Our Optimised Feasibility Study advanced meaningfully, with the completion of key engineering deliverables and logistics studies now informing the path to execution and capital cost refinement for our world-class Australian Vanadium Project. Concurrently, we made significant progress in key permitting activities to align our approvals with the optimised project scope.
“In the midstream, our work toward utility-scale electrolyte production has laid the groundwork for a scalable and cost-effective pathway to deliver electrolyte in quantities large enough to support Project Lumina deployments and other utility-scale energy storage opportunities under assessment by VSUN Energy.
“Project Lumina itself continues to demonstrate AVL’s leadership in long-duration energy storage. The significant reduction in the LCOS we are seeing underscores vanadium flow batteries’ position as a compelling alternative to lithium-ion in the 8-hour-plus market segment. Across five states, VSUN Energy is working to advance opportunities for utility-scale deployment.
“As energy markets transition, AVL remains focused on unlocking value across the entire vanadium supply chain. We are proud to be progressing Australia's energy security and decarbonisation goals through cost effective, innovative, locally driven solutions backed by proven technology and growing government support.”
Feasibility study and permitting on track
AVL advanced Phase 2 of the OFS for the Australian Vanadium Project, with major engineering deliverables finalised, including concentrator and processing plant layouts, process design criteria and updated logistics studies. These efforts support the development of a refined execution strategy and updated capital and operating cost structure, with OFS completion targeted for Q3 CY2025.
The company also submitted amendments to the Environmental Protection Authority and Ministerial Statement to reflect the optimised project scope. Environmental monitoring activities at Gabanintha and Tenindewa continued, including baseline studies for water, air and noise.
Electrolyte qualification and plant expansion
AVL focused midstream efforts on vanadium electrolyte qualification and production expansion. The company worked with global vanadium flow battery (VFB) original equipment manufacturers to align analytical methods supporting product certification. Preliminary engineering and costing were completed for manufacturing capacity expansion, targeting deployment scenarios under Project Lumina.
The Perth-based plant hosted key federal and international stakeholders including the UAE Ambassador and Australian Ministers, showcasing AVL’s role in critical minerals processing and the national battery strategy.
Project Lumina targets utility-scale battery deployment
VSUN Energy, AVL’s 100%-owned subsidiary, continued development of Project Lumina — a scalable, turnkey utility-scale VFB BESS tailored for Australian conditions. Design improvements have reduced construction costs and improved levelised cost of storage (LCOS), now estimated at A$214/MWh (±30%) for an 8-hour system, placing it competitively with lithium-ion alternatives.
The system’s modular 15MW architecture supports faster deployment and local content integration. Engagements with partners including GenusPlus, Sedgman and CellCube are informing the construction-ready design. AVL aims to make a final investment decision on Project Lumina in Q3 CY2025.
Positioning for WA’s 500MWh Kalgoorlie project
VSUN Energy is actively pursuing deployment opportunities across five Australian states. AVL is particularly well placed to support WA Labor’s proposed 500MWh VFB project in Kalgoorlie, aligning with the company’s vertically integrated capabilities and Project Lumina’s scalability.
AVL also partnered with Curtin University to install a demonstration VFB at the WA School of Mines in Kalgoorlie. The collaboration supports local decarbonisation goals and highlights vanadium’s role in energy transition technologies, including metallurgical integration.
Financials and corporate activity
AVL ended the quarter with A$11.5 million in cash, including A$5.1 million in federal grant funding for eligible activities. The company received a A$1.59 million Research & Development Tax Incentive refund and was issued a A$3.7 million stamp duty notice related to the Technology Metals Australia merger. AVL continues to engage with RevenueWA on a payment schedule.
Quarterly net operating cash outflows were A$1.3 million, while A$4.3 million was spent on investing activities — largely directed towards the Australian Vanadium Project and Project Lumina. AVL has implemented cost-saving initiatives, including staff reductions and tighter discretionary spending, to maintain financial flexibility as it progresses toward major development milestones.