Following the growing support for the strategic development of vanadium projects in Australia. Australian Vanadium Ltd (ASX:AVL, OTCQB:ATVVF) has received a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM), for up to US$31 million in financing for the Australian Vanadium Project.
This support from EXIM, which is the official export credit agency of the Federal Government of the United States, is linked to the possibility of sourcing equipment from the US for the project.
As part of the optimised feasibility study, AVL will seek to increase the US content in the project, including sourcing additional equipment, goods, and services, which may enhance the financing offered by EXIM.
Any further financing from EXIM is contingent upon its policies, procedures, due diligence and approval by its board of directors.
“Receiving support from agencies such as EXIM to help fund the project demonstrates its advanced and significant nature. AVL is working with a range of export credit agencies around the world, including Australia, in addition to commercial banks, to help secure finance to support the development of the Project,” AVL CEO Graham Arvidson said.
“Vanadium is classed as both a critical and battery mineral, with countries around the world looking to establish secure supply chains. Working with the United States aligns with the Australian Federal Government’s strategic goals for the critical and battery mineral industries.”
AVL project locations.
Feasibility study progressing well
AVL’s Australian Vanadium Project will consist of a mine, a crushing, milling and beneficiation plant located at Gabanintha, near Meekatharra, and a downstream vanadium processing plant at Tenindewa, near Mullewa. Additionally, AVL owns and operates a vanadium electrolyte manufacturing facility in Perth.
The company is progressing its optimised feasibility study for the project.
Upcoming key milestones include finalising the detailed mining plan, optimising all project infrastructure, and completing the layout and key design criteria for the Project.
The company had a big win recently when it completed factory acceptance testing of a vanadium flow battery (VFB), using AVL’s vanadium electrolyte, to be installed at a Horizon Power site in Kununurra, Western Australia.
Read more: Australian Vanadium’s electrolyte successfully deployed in vanadium flow battery
Highly advanced project
AVL is advancing the development of its Australian Vanadium Project at Gabanintha, one of the most advanced vanadium projects globally. The project contains 395.4Mt at 0.77% vanadium pentoxide (V2O5), including a high-grade zone of 173.2Mt at 1.09% V2O5.
These figures were reported in accordance with the JORC Code 2012, following an ASX announcement on 7 May 2024 that highlighted a 39% increase in the high-grade measured and indicated mineral resource.
AVL’s renewable energy and energy storage subsidiary, VSUN Energy, focuses on developing the Australian market for vanadium flow batteries (VFB) for long-duration energy storage. Established in 2016, VSUN Energy is recognised for its expertise in VFB technology.
AVL’s vertical integration strategy involves processing vanadium to high purity, manufacturing vanadium electrolyte, and collaborating with VSUN Energy to implement projects related to renewable energy generation and VFB storage.
Read more on Proactive Investors AU
