Pilot test work by Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has delivered the goods, demonstrating the capability to produce greater than 99.9% ultra-high purity vanadium pentoxide (V2O5) at pilot scale, using the company’s own ore.
Easy scalability
The results confirm a processing route that can easily be incorporated into the AVL flowsheet, employing well-known processing technology that can be readily scaled to meet market demand.
AVL’s ultra-high purity flowsheet includes a scalable ‘bolt-on’ option to produce ultra-high purity vanadium oxides, which demand a premium price.
Ultra-high purity vanadium pentoxide is critical in applications where even the smallest impurities can significantly affect performance, such as the chemical industry and specialty alloys for the aerospace industry, including defence.
A growing number of market segments demand higher purity levels. AVL has identified the importance of satisfying this expanding market in addition to other steel and battery markets which can use the company’s standard 99.5% purity level.
Government backing
The work undertaken to achieve ultra-high purity vanadium pentoxide was partly funded through a $3.69 million Australian Government Modern Manufacturing Initiative Translation grant under the National Manufacturing Priority Roadmap.
AVL worked in conjunction with Australia's Nuclear Science and Technology Organisation (ANSTO) in Sydney to develop a feasible processing route.
The pilot for producing ultra-high purity vanadium pentoxide is the culmination of two years of work, exploring the most economic method for producing this product.
"Competitive advantage"
CEO Graham Arvidson said: “AVL’s ability to produce 99.9% ultra-high purity vanadium pentoxide, in addition to our 99.5% standard high purity vanadium pentoxide, allows us to further strengthen our competitive advantage in specialised markets in which premium products attract a higher value.
“Our distinct advantage as a business continues to be our outstanding technical and economic vanadium processing acumen and I commend the team for the work undertaken to create and substantiate a new pathway for additional value creation.
Superior investor return
“Our conviction remains that vanadium producers who can achieve the highest quality vanadium oxides will stand above the rest and command the greatest and most enduring returns.
“In addition to our proposed world-class vanadium project, our lowest quartile unit cost competitiveness strategy and our focus on product quality will provide further long-term competitive advantages to the company and superior investor return.
“We have been pleased to work with the team at ANSTO and for the support that the Australian Government has provided us in achieving this milestone.
“Adding value to vanadium through downstream processing in Australia aligns with the Federal Government’s Critical Minerals Strategy 2023-2030 and helps to keep the value of Australia’s minerals in the country as we transition to a net zero future.”