Australian Vanadium Limited announced the successful completion of the construction of its state-of-the-art Vanadium Electrolyte Manufacturing Facility in the northern suburbs of Perth.
This milestone represents a significant leap forward for AVL, positioning the company at the forefront of the growing vanadium flow battery (VFB) industry, the company said in an ASX announcement.
The newly completed facility, designed to produce up to 33MWh per year of high purity electrolyte for VFBs, marks a strategic investment in domestic downstream processing capability.
Funded in part by a $3.69 million Australian Government Modern Manufacturing Initiative grant, AVL has demonstrated a commitment to capturing and retaining more value from Western Australia’s abundant battery mineral resources.
Constructed by Western Australian-based engineering company Primero Group, a subsidiary of NRW Holdings, the project was executed without incident, and AVL has officially issued a certificate of practical completion.
This paves the way for the formal handover of the facility from the construction team to the commissioning team.
The facility incorporates proven electrolyte manufacturing technology exclusively licensed from US Vanadium LLC (USV) to AVL in Australia and New Zealand.
This strategic collaboration significantly reduces development risk and enhances AVL’s position in the rapidly expanding VFB market.
USV will continue to play a crucial role, assisting with the commissioning of the Facility, which is anticipated to be completed in early 2024.
The vanadium electrolyte produced by the facility will initially be utilised in AVL’s VFB projects through its wholly-owned subsidiary, VSUN Energy Pty Ltd. This will further allow AVL to qualify its product with key global VFB manufacturers.
The demand for vanadium electrolyte in the Asia Pacific region is projected to soar in the coming years.
According to Guidehouse Insights, the Asia Pacific region is set to lead with a compound annual growth rate (CAGR) of 25.7 per cent for revenue and 37.4 per cent for energy capacity.
By 2031, it is estimated that the region will reach around 14.5 GWh of annual VFB energy capacity.
The completion of the Vanadium Electrolyte Manufacturing Facility not only showcases AVL’s technical prowess but also positions the company to actively engage with downstream aspects of the vanadium and VFB markets.
The experience gained from this project is expected to play a pivotal role in the upcoming construction of the Australian Vanadium Project.
Graham Arvidson, CEO of AVL, expressed satisfaction with the successful and secure implementation of another phase of the company’s ‘pit to battery’ strategy.
“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,” he concluded.
