Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has boosted its coffers with a milestone payment of $14.7 million from the Australian Government under the Modern Manufacturing Initiative – Manufacturing Collaboration Stream.
This payment brings the total funds received by AVL under the scheme to $24.5 million of up to $49 million potentially available under the scheme.
The grant is designed to support AVL’s journey to producing vanadium electrolyte for vanadium flow batteries (VFB), including activities required to construct and commission a crushing, milling and beneficiation plant and a high-purity vanadium processing facility capable of using green hydrogen to partly fuel the extraction process.
The scope of the grant encompasses support for all stages of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte production, a key enabler for the Australian vanadium flow battery industry.
Testament to “outstanding work”
“AVL continues to work closely with the Australian Government, and we are grateful to receive this second milestone payment,” Australian Vanadium CEO Graham Arvidson said.
“It is testament to the outstanding work being undertaken to progress the Australian Vanadium Project, which will benefit not only the Mid-West region of Western Australia where the project will operate but Australia more broadly, as we continue to realise the onshore vanadium value chain from pit-to-battery that will support Australia’s energy transition ambitions.
“Our project is expected to create hundreds of jobs in mining and processing and will expand to battery manufacturing value chains around the country, as vanadium flow batteries are more widely adopted to meet the long duration energy storage requirements of renewable energy generation.
“We continue to collaborate with industry partners and look forward to sharing these developments as they advance.”
AVL also expects to receive further support following the announcement of the Federal Government’s Budget 2024-25 Future Made in Australia strategy, specifically from the proposed Critical Minerals Production Tax Incentive from 2027-28 to 2040-41.
AVL expects the tax incentive to be applicable at two stages of the company’s vertically integrated operations - at the processing stage of vanadium oxide production at the processing facility and in the production of vanadium electrolyte at its manufacturing facility.