Australian Vanadium Ltd (ASX:AVL) has engaged prominent Western Australian engineering company Primero Group Ltd to undertake the Early Contractor Involvement (ECI) for the construction of its vanadium electrolyte manufacturing plant.
This will be the first stage of the vanadium electrolyte manufacturing plant build process, with stage two being the engineering, procurement, and construction (EPC) of the site.
The ECI will incorporate analysis of partner company US Vanadium LLC’s plant design with Australian standards, using proven electrolyte manufacturing technology and simplifying design layouts, construction and start up while aiding in EPC contract preparation.
Government and market support
The market has expressed its support for AVL’s news with shares as much as 14% higher intraday to A$0.025.
The Australian Government has also demonstrated its confidence in the project, with a $3.69 million Federal Government grant awarded to AVL in July 2021.
Part of the funding has been allocated to building and operating a commercial vanadium electrolyte manufacturing plant in Western Australia to support the rollout of Vanadium Redox Flow Batteries (VRFBs) in Australia.
Next step in vertical integration
“The contract award to Primero is the next step in AVL’s vertical integration strategy, cementing the company’s goal to develop downstream processing capability in Australia,” AVL managing director Vincent Algar commented.
“We are delighted to be working with Primero on this project, who have a proven track record for delivery of battery minerals projects in Australia and worldwide.
"We look forward to delivering Australia’s first vanadium electrolyte manufacturing plant, built in Western Australia by an Australian company.”
An emerging vanadium producer, AVL is developing its high-grade Australian Vanadium Project in Western Australia to produce material for the steel and battery markets.
About Primero
Primero is a vertically integrated EPC business operating in the Mineral Processing, Energy and Non-process Infrastructure market segments as a turnkey solution provider.
“Primero is excited to work with AVL to deliver high purity electrolyte production capability for use in VRFBs here in Western Australia,” Primero managing director Cameron (NYSE:CAM) Henry said.
“This will provide a critical link in the supply chain for VRFBs, a growing energy storage solution, and continues the ‘new energy’ and battery materials theme that Primero is well known for.”
Equivalent of 2,444 Tesla Powerwalls
AVL’s vanadium electrolyte plant will initially be capable of producing enough electrolyte per annum to fill VRFBs that can store up to 33MWh of energy.
For comparison, a single Tesla Powerwall stores 13.5kWh of energy, meaning the plant will produce equivalent energy storage capacity of 2,444 Powerwalls per year.
The steel market currently consumes most of the world’s vanadium production, but VRFBs are anticipated to grow rapidly. Demand for battery material is expected to reach 25,000 tonnes of vanadium and account for over 15% of global vanadium consumption by 2025.
