- Technology Metals Australia (TMT) has signed an agreement with China-based vanadium company Big Pawer to form an offtake and joint venture
- The parties will investigate the production of vanadium to establish a Vanadium Redox Flow Battery manufacturing base in Australia
- Big Pawer will utilise its proprietary technology and TMT will source high purity vanadium from its Gabanintha Project near Meekatharra
- This agreement marks an important milestone for TMT to become a key participant in the vanadium market
- Company shares are up 25 per cent and are trading for 15 cents each
Technology Metals Australia (TMT) has signed a memorandum of understanding (MoU) with Big Pawer Electrical Technology Xiangyang.
The MoU includes a binding V2O5 offtake agreement for vanadium production from the Gabanintha Vanadium Project in Western Australia.
The companies also plan to form a joint venture to potentially produce vanadium electrolyte and establish a Vanadium Redox Flow Battery (VRFB) manufacturing base in Australia.
To establish this VRFB manufacturing base, Big Pawer will utilise its proprietary VRFB technology, while TMT will source the high purity vanadium from Gabanintha.
“Our vision is for the very high purity Gabanintha vanadium product to play a significant role in the development of the domestic VRFB industry and this MoU marks a key first step in achieving that vision,” TMT Managing Director Ian Prentice said.
This agreement marks an important milestone for TMT in supplying the VRFB market as Big Pawer is one of the world’s leading VRFB research, development and manufacturing companies. It has supplied VRFB systems to over 20 global locations.
“We are very pleased to have established this relationship with Technology Metals Australia and aim to progress our offtake and joint venture discussions based on the principles of mutual benefit and respect,” Big Pawer Executive Director and General Manager of VRFB Yu Longhai said.
Under the MoU, Big Pawer will purchase up to 1000 tonnes per annum (tpa) during the ramp-up and commissioning phase of the project. Subject to product availability, a maximum annual quantity of 5000tpa vanadium pentoxide will be purchased.
The MoU is effective until December 30, 2020, unless the parties mutually agree to formally terminate or extend the agreement term.
Next steps for both companies include conducting due diligence during which time the parties will complete site visits.
Company shares are up 25 per cent and are trading for 15 cents each at 11:01 am AEST.