Australian Vanadium (ASX:AVL) has produced its first batch of vanadium electrolyte from the successfully installed and commissioned pilot plant at the University of Western Australia.
This represents another important milestone for AVL’s energy storage strategy as the product is suitable for the use in vanadium redox flow batteries (VRBs).
VRBs are energy storage devices designed to store large amounts of energy, which is usually generated from renewable sources.
Plans for a larger commercial plant will begin to be evaluated shortly by the company as part of a concept study.
The company’s strategy is to deliver vanadium products such as batteries to end users and supply and process raw materials sourced from Gabanintha vanadium project in Western Australia.
Road to commercialisation
The pilot plant is being used to test and verify the production of vanadium electrolyte products that are suitable for use in third party VRB.
Initially AVL plans to supply vanadium electrolyte to VRBs being sold in Australia, New Zealand, the Pacific and Asia.
However, the company has also been approached by battery manufacturers in Europe who are seeking long term electrolyte supplies.
A range of additional batches of vanadium electrolyte will be produced and analysed over the coming weeks.
Information will be gathered from the testing including reviews by vanadium battery researchers and manufacturers.
The concept study will be advanced with the assistance of C-Tech and other experts in the vanadium electrolyte sector.
Background
AVL is advancing the development of its 100%-owned Gabanintha Vanadium project measuring 91.4 million tonnes at 0.82% vanadium.
AVL also aims to develop a local production capacity for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries.
AVL is actively marketing vanadium redox flow batteries in Australia through a distribution agreement with world-leading flow battery manufacturer, GILDEMEISTER.
AVL has sold and installed its first vanadium redox flow battery storage system at a native tree nursery in Busselton, Western Australia.
AVL has also commenced exploration at its recently acquired 50.03% owned Blesberg lithium-tantalum project located in South Africa.
Analysis
The successful installation and production from the pilot plant is an important milestone in building towards AVL’s strategy to become a vertically integrated player in the vanadium market.
The potential rapid development of a commercial plant in Australia is in keeping with AVL’s strategy to offer investors involvement in the entire energy storage value chain and provide early cash flow opportunities.
Ideally AVL will supply a commercial plant with input from its Gabanintha Project and the output from the plant will be used for products such as VRBs.
Having sold its first VRB through its distribution agreement with GILDEMEISTER, the processing plant represents a key missing link in the supply chain.
Furthermore, the university location represents an excellent opportunity for collaboration between the commercial and educational fields in this technology space.
Demand for electrolyte quality vanadium is rising and strongly supports the integration strategy adopted by AVL.
Shares in AVL have more than doubled over the past 12 months, currently priced at $0.016.
AVL offers good exposure to the growing clean energy sector.