ASX-listed Australian Vanadium Limited (AVL) has executed a $49 million collaboration grant agreement with the Commonwealth of Australia to support the Australian Vanadium Project – one of the most advanced critical mineral vanadium projects being developed globally.
The agreement, which is a part of the Manufacturing Collaboration Stream of the Modern Manufacturing Initiative, was announced by AVL after the grant’s awarding in March 2022.
AVL said the grant will particularly help the company’s flagship Australian Vanadium Project, which has the ability to produce 11,200 tonnes of vanadium pentoxide per year during a 25-year mine life.
Moreover, the grant will fund qualifying activities to build and commision a concentrator and high-purity vanadium processing facility capable of utilising green hydrogen as part of the project’s extraction process.
This important mineral extraction technique is a prerequisite for the production of vanadium electrolytes, AVL said.
The grant’s scope also includes assistance for all phases of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte manufacture, a critical enabler for the Australian vanadium redox flow battery industry.
As part of the grant activities, AVL will also engage with Bryah Resources Limited to investigate possibilities for economically extracting cobalt, nickel, copper, and gold from the project.
AVL said broader operations required to complete the project, such as mine development and supporting infrastructure, will be supported from sources other than the grant.
Graham Arvidson, AVL CEO, commented on the recent announcement, saying that the company has been working closely with the Australian Government while expressing his delight over the grant funding.
“The grant will be of great benefit to AVL as we seek to optimise and finalise our financing and offtake arrangements and continue to move the Project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly,” Arvidson noted.
The agreement begins on 29 May 2023 and concludes on 31 July 2026.
