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Latest Australian Vanadium (ASX:AVL) deal set to kick-start battery production

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ASX:AVL      MCAP $120.5M
11 August 2021 11:40 (AEST)
Australian Vanadium (ASX:AVL) - Managing Director, Vincent Algar

Source: Australian Vanadium

Australian Vanadium (AVL) shares have risen after the company inked a second arrangement with U.S. Vanadium, with its first vanadium oxides order already in Perth.

The memorandum of understanding (MOU) will see U.S Vanadium provide AVL vanadium oxides supply for vanadium electrolyte production and include a licence for USV’s vanadium oxide conversion technology for use in vanadium flow batteries.

An initial order for USV vanadium oxides has arrived in Perth, which Australian Vanadium said will be converted and used in a commercial flow battery deployment.

AVL affirms the agreement will allow it to commence local vanadium electrolyte production and potentially secure a position in Australia’s vanadium redox flow batteries market.

The arrangement follows AVL’s previous MOU signed with U.S Vanadium for the offtake of vanadium from AVL’s vanadium project near Meekatharra in Western Australia.

AVL’s Managing Director said having a strong relationship with US Vanadium enables a secure supply of vanadium oxides.

“This will allow us to move quickly to build a vanadium electrolyte plant here in Australia to supply the growing VRFB market,” he said.

“This vertical integration strategy puts AVL in a strong position to secure financing for the Project and provides Australian employment opportunities in the downstream battery supply chain.”

Australian Vanadium shares were up 4 per cent at 11:44 am AEST to trade at 2.6 cents.


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