Technology Metals Australia Ltd (ASX:TMT) (FRA:TN6) has executed a non-binding Memorandum of Understanding (MoU) with LE System Co Ltd (LES) of Japan to assess the potential application of LES’ proprietary technology to extract vanadium and other metals from the Gabanintha Vanadium Project (GVP) waste streams.
The MoU will also explore establishing a joint venture (JV) to investigate the opportunity to manufacture Vanadium Redox Flow Batteries (VRFB) electrolyte in Western Australia - supporting TMT’s downstream processing strategy.
In addition, TMT and LES will investigate the opportunity to sell the high-grade, high purity iron-vanadium concentrate to be produced from the Yarrabubba Iron-Vanadium Project to Japanese customers with the aim of providing a reliable source of vanadium for LES’s VRFB electrolyte business.
Shares have been as much as 10% higher to 38.5 cents.
“Step in sustainable project development”
Successful application of the proprietary processing technology to the GVP waste streams would provide LES with access to a low-cost stable supply of vanadium products and provide TMT with potential environmental management benefits, supporting the company’s key objectives of sustainability and environmental responsibility.
TMT managing director Ian Prentice said: “Execution of this MoU with LE System is an important step in delivering on our vision of developing the GVP in a sustainable, environmentally responsible manner and represents another key component of our strategy to develop downstream processing opportunities to play a significant role in the development of a domestic VRFB industry.
“The MoU also supports TMT’s staged project development strategy through the investigation of opportunities to expand the customer base for the Yarrabubba high grade, high purity iron-vanadium product.”
This opportunity would have scope to establish a significant downstream value add industry designed to target what TMT sees as the rapidly emerging stationary storage battery market opportunities in Australia, further enhancing the significant economic and social benefits for the Mid-West region of Western Australia, the State and the Nation that the development of Gabanintha is expected to generate over a long period of time.
Supported by WA Government
The development of this relationship with LES and the negotiation of this MOU was supported and facilitated by the Western Australian Government's Japan-based representative of the Department of Jobs, Tourism, Science and Innovation.
TMT is looking forward to continuing to work closely with the Northern Australia Infrastructure Facility (NAIF), the Western Australian Government’s Lead Agency team and other Government agencies as it progresses the development of Gabanintha to be a producer of vanadium, a critical mineral with a vital role to play in the efficient and effective deployment of renewable energy.
Vanadium’s strategic importance to the Australian economy has been recognised with its inclusion on the Australian Government’s list of critical minerals and the recently announced modern manufacturing initiative, designed to support downstream processing and manufacturing including the resources technology and critical minerals processing road map.
Key MoU terms
The MoU establishes a framework for ongoing discussions, evaluations and negotiations aimed at progressing the technical collaboration, associated R&D, and the potential joint development of a vanadium electrolyte production facility in Western Australia, ultimately leading to the delivery of a definitive and binding agreement and the establishment of a JV for vanadium electrolyte manufacturing in Australia.
Key terms of the MoU are:
- Technical collaboration between the parties assessing GVP waste stream samples, flowsheet design and associated R&D for the application of LES’ proprietary processing technology;
- TMT to provide required samples, subject to availability, with each party to share costs of transport and analysis;
- Aim to assess the potential to produce vanadium products from the GVP waste streams on a shared cost and benefits basis;
- Explore the concept of using LES’ proprietary processing technology to deliver vanadium recovery, operating cost and capital cost improvements at GVP;
- The parties to develop a vanadium supply plan to support LES forecast demand for electrolyte production;
- Investigate the opportunity to jointly produce vanadium electrolyte for the VRFB market in Australia and prepare a study with regard to establishing a JV for manufacturing electrolyte;
- The parties to investigate the opportunity to sell Yarrabubba high-grade iron-vanadium concentrate in Japan with the aim of extracting vanadium to satisfy LES’ long-term demand; and
- The parties to work collaboratively to source investment to support the development of GVP, Yarrabubba and manufacturer of vanadium electrolyte.
The MoU is effective until December 31, 2021, unless the parties mutually agree to formally terminate or extend the term.