Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce that it has successfully commissioned its vanadium electrolyte manufacturing facility (Facility) and produced its first high purity vanadium electrolyte, ready for use in vanadium flow batteries (also known as ‘VFBs’). This follows the completion of construction of the Facility in December 20231 and the official opening by Federal Resources Minister, the Hon. Madeleine King MP on 17 January 2024.2
KEY POINTS
AVL has successfully produced its first high purity vanadium electrolyte for use in vanadium flow batteries at its electrolyte manufacturing facility.Independent testing shows that the vanadium electrolyte complies with typical specifications required by vanadium flow battery manufacturers.
AVL’s Chief Executive Officer, Graham Arvidson comments, “The completion of the facility, coupled with the confirmation of the production of on-specification vanadium electrolyte from Western Australia’s first manufacturing facility, achieves another major milestone for AVL and is a positive reflection of the technical and operational expertise within our organisation. We are ready to accept orders for electrolyte and are actively pursuing sales.”
Vanadium electrolyte is one of the key components of vanadium flow batteries. These batteries are well suited to large-scale energy storage applications, such as those required for electrical grids. They offer a high capacity for energy storage and a long cycle life, having the ability to be charged and discharged repeatedly without significant degradation. AVL’s wholly owned subsidiary, VSUN Energy Pty Ltd, is establishing a long duration energy storage pilot for Horizon Power in Kununurra, in the north of Western Australia.3 Projects such as this have the potential to use vanadium electrolyte produced by the Facility, demonstrating the potential for a high local content solution for Australia’s long-duration energy storage needs.
The unique advantages of vanadium flow batteries, including their scalability, long lifespan and the ability to maintain capacity over time, makes vanadium electrolyte a critical component in addressing the challenges of energy storage and distribution in a world increasingly reliant on intermittent renewable energy sources.
The successful establishment of the Facility is an important milestone for AVL and the development of industries to support Australia’s long-term carbon emission reduction plans. The Facility was built with Federal government assistance in the form of a $3.69 million Australian Government Modern Manufacturing Translation grant, awarded to AVL under the National Manufacturing Priority Roadmap in 2021.4 The majority of the grant was used to contribute to the cost of building the Facility.
The Facility, located in Wangara, Perth, was designed to produce high-purity electrolyte to support up to 33 MWh per year of VFB energy storage.5 AVL is able to expand the Facility easily. The ability to source local electrolyte will enable AVL to become a trusted supplier of vanadium electrolyte for battery projects in Australia and the wider region, at a time when there is increasing community and government interest in ensuring capabilities to support the energy transition.
The Company is using proven electrolyte manufacturing technology licensed from U.S. Vanadium LLC (USV) exclusively to AVL in Australia and New Zealand. Staff from USV travelled from the United States to assist with commissioning. Supplies of the vanadium oxides required by the Facility for the production of vanadium electrolyte are currently being provided by USV. When the Australian Vanadium Project is in production, the Company will provide full ‘pit to battery’ downstream value addition, by generating a vanadium concentrate at the mine site, to be fed to AVL’s proposed processing plant for producing the vanadium pentoxide used as a feedstock for the Facility.
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