Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has finished building its state-of-the-art vanadium electrolyte manufacturing facility in Perth – the first in Western Australia.
The new facility is now ready to produce up to 33 Megawatt-hours (MWh) of high-purity vanadium electrolyte annually – a production capability expected to cater to the escalating demand in the vanadium flow batteries (VFBs) market.
VFBs, known for their efficiency and longevity, are increasingly being used in large-scale energy storage systems.
Domestic downstream capability
The successful build enhances AVL’s involvement in the downstream aspects of the vanadium and VFB markets and marks a milestone in the advancement in the domestic production of battery minerals.
This allows for a greater proportion of the value derived from WA's rich battery mineral resources to be retained here in Australia, enriching the country’s economic diversity, self-sufficiency and sustainability aspirations.
These aspirations are backed by a $3.69 million grant from the Australian Government's Modern Manufacturing Initiative, a strategic investment in domestic processing capabilities.
The construction was undertaken by the Western Australian-based Primero Group, a subsidiary of NRW Holdings (ASX: NWH).
The company underscored that the facility was constructed with a focus on robust safety protocols and efficient project management by the team, and there were no reported injuries during the build.
Technology aligned to global standards
The facility employs advanced electrolyte manufacturing technology, licensed from US Vanadium LLC (USV), ensuring a reduced development risk.
USV's involvement extends to assisting with the commissioning of the facility, scheduled for early 2024. The use of this technology positions AVL favourably in the market, aligning it with global standards.
The produced vanadium electrolyte will initially be used in VFB projects by AVL’s subsidiary, VSUN Energy Pty Ltd. This stage will also allow AVL to qualify its product with leading global VFB manufacturers, potentially expanding its market reach.
In its initial phase, the facility will source vanadium pentoxide from USV, transitioning to AVL’s Australian Vanadium Project in Western Australia once operational.
Demand to grow
The demand for vanadium electrolyte in the Asia Pacific region is forecasted to grow significantly.
Guidehouse Insights predicts a compound annual growth rate (CAGR) of 25.7% in revenue and 37.4% in energy capacity for the region.
By 2031, it is projected that the Asia Pacific will achieve some 14.5 GWh of annual VFB energy capacity.
AVL CEO Graham Arvidson said: “We are pleased to have been able to successfully and safely execute another segment of our ‘pit to battery’ strategy through the construction of Western Australia’s first vanadium electrolyte manufacturing facility.
“We are grateful to the teams at Primero and USV for their contributions in delivering a facility that is first of its kind for Western Australia.
“Production of AVL’s first vanadium electrolyte will position the company to become a trusted supplier for battery projects in Australia and the wider region.”