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Australian Vanadium (ASX:AVL) signs MoU with Singaporean battery producer

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ASX:AVL      MCAP $129.1M
01 December 2020 14:45 (AEST)

Australian Vanadium (AVL) has signed a memorandum of understanding (MoU) with V-Flow Tech.

V-Flow is a Singapore-based manufacturer of vanadium redox flow batteries (VRFB) which claim to outperform other flow batteries in terms of round-trip efficiency, energy density and thermal window.

The VRFB batteries offer non-flammable energy storage, can operate in a temperature range of minus 10 degrees Celsius to 55 degrees celsius without active cooling, and have a lifespan of 25 years.

V-Flow’s storage solution is packaged into three product ranges. These are in batteries for telecom towers or homes, for commercial and industrial applications and microgrids for remote communities and for larger utility-scale deployments to meet the growing demand for energy storage.

The MoU involves the development of vanadium pentoxide offtake arrangements to support global battery sales and the manufacture and supply of vanadium electrolytes for VRFB installations in Australia.

The non-binding deal also involves a sales agreement between V-Flow and AVL’s subsidiary, VSUN Energy, for VRFB sales in Australia.

“VSUN Energy has a strong base in Australia and already has many potential opportunities for our batteries. In addition, our partnership with AVL will be able to boost the supply chain strategy for vanadium electrolyte,” V-Flow CEO Dr Avishek Kumar said.

Vanadium electrolyte forms a key component of vanadium redox flow batteries and VSUN Energy is marketing the VRFB across Australia.

“VSUN Energy is actively working on deployment of V-Flow VRFB’s into projects in the Australian market, as well as the south-east Asian market,” AVL Managing Director Vincent Algar said.

The subsidiary has recently sold a V-Flow VRFB as part of a standalone power system for a regional WA customer. The battery will be marketed to both on and off-grid residential customers, telecommunications and grid-attached small commercial settings.

The MoU covers an initial two-year period with the option to extend for another 12 months.

AVL is up 3.85 per cent and shares are trading at 1.4 cents at 1:16 pm AEDT.

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