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Australian Vanadium
Overview
Australian Vanadium Limited (ASX:AVL) is a Western Australia-based company focused on the Vanadium supply chain, from mining to batteries. The company has a “pit to battery” strategy, which involves processing the vanadium and creating vanadium electrolytes to manufacture vanadium flow batteries (VFB) and become a VFB supplier in Australia.
AVL will generate vanadium concentrate at the mine, which will be fed to the company’s processing plant to produce vanadium pentoxide, which will then be used as feedstock for its vanadium electrolyte manufacturing facility. AVL will leverage its wholly-owned subsidiary, VSUN Energy, to create safe and reliable renewable energy storage solutions using VFB.
Currently, around 85 percent of the vanadium is sourced from China, Russia and South Africa. Vanadium is classified as a critical mineral in several countries, including the US, EU and Japan, and with its geopolitically stable environment and mining-friendly policies, Australia makes for an attractive, secure supply source.
AVL boasts a world-class vanadium asset in a tier-1 mining jurisdiction. The company’s flagship Australian Vanadium project is one of the most advanced vanadium projects in the world. The asset comprises vanadium, titanium and magnetite ore body located on wholly-owned tenements, making it scalable. The project will consist of a simple open pit mine and a processing plant, which will be close to a major port bringing lower-cost energy, water and manpower.
AVL’s recent merger with Technology Metals Australia (TMT) has provided several key benefits, including the consolidation of each company’s tenements into one big project. The merger has created a 17 kilometre strike for the high-grade magnetite domain, allowing for efficient mine infrastructure. Moreover, the merger improves the project's economics through access to high-grade mineralization, which is now unconstrained.
A bankable feasibility study (BFS) prior to the merger had the following key parameters:
- Annual production of 11,200 t V2O5
- Mine life of 25 years
- Pre-production capex of $435 million
- Opex of $4.43/lb of V2O5
Following the merger, the company is preparing an optimized feasibility study (OFS) to improve the capex and opex and deliver better project economics. The next steps for the project include a combined mineral resource estimate, publishing the OFS report, certain approvals, offtake agreements, and financing.
The demand for vanadium is expected to increase significantly due to the growth of VFBs. However, the fundamental demand for vanadium remains strong across the end markets, including its application in steel production, aerospace and energy storage. In fact, a sharp rise in demand for energy storage applications will result in a supply deficit that will grow from 2024 onwards.
Vanadium flow batteries have two tanks filled with vanadium electrolyte fuel. First invented 40 years ago, VFBs have since been commercialized for large-scale applications. The technology offers compelling cost savings for applications with greater than four hours of storage.
The VFB technology has several technological and economic merits that are driving the scale of the projects. First, it is superior economically for long-duration storage applications. Second, it is non-flammable, making it very stable. Third, it provides 100 percent depth of discharge with multiple cycles. Fourth, it offers a life span of over 25 years. Fifth, it is easy to scale. It is well proven at MWh scale and is now moving towards GWh scale.
Given these techno-economic benefits, the VFB industry is experiencing unprecedented global growth, led by China. Currently, 208 VFBs are in operation, 51 are under construction, and 87 new projects have been announced. To give an idea of this rising demand, in 2025, China alone will consume 11 times AVL's annual production of 11,200 tons of V2O5.
The company has a well-crafted vertical integration strategy to participate across the vanadium supply chain. In addition to supplying vanadium, the company is present in the manufacturing of vanadium electrolyte and batteries.
AVL’s Vanadium Electrolyte Facility official opening by Australian Government minister for resources and Northern Australia Hon. Madeleine King MP alongside non-executive director Anna Sudlow, chair Cliff Lawrenson, CEO Graham Arvidson and non-executive director Miriam Stanborough.
AVL has completed the construction of a vanadium electrolyte manufacturing plant in Perth, Western Australia. The project has received funding from the Australian Government. The plant has a capacity of 33 MWh per annum of energy storage. The first production was completed in 2024, and VFB manufacturers will test samples. The electrolyte produced is further processed by AVL’s wholly-owned subsidiary, VSUN Energy, to create large scale energy storage solutions using VFBs.
Company Highlights
- Australian Vanadium Limited (AVL) is a Western Australia-based company focused on the entire vanadium supply chain, from mining to batteries. The company’s “pit to battery” strategy includes processing the vanadium to create vanadium electrolytes for vanadium flow batteries (VFB), as the company intends to become a VFB supplier in Australia.
- The Australian Vanadium project is the company’s flagship mining project and is one of the most advanced projects globally.
- The company recently completed its merger with Technology Metals Australia (TMT), which is likely to significantly boost the project's economics. The company is working on the project's optimized feasibility study (OFS) report.
- Given that only three countries (Russia, China and South Africa) contribute 85 percent of the global supply of vanadium, an Australian supply source makes the project attractive.
- The demand for vanadium is poised to grow across the end markets, including steel, aerospace and battery storage. Growing demand for VFBs has the potential to provide a sizable end-demand market for vanadium. Vanadium demand from batteries could reach 50 percent of the total demand by 2030, from the current share of just 7 percent.
- The company has a well-crafted vertical integration strategy. In addition to vanadium supply, it is also focusing on vanadium electrolyte manufacturing and the supply of VFBs to the Australian market.
- VSUN Energy, AVL’s subsidiary, creates safe and reliable renewable energy storage solutions using vanadium flow battery technology.
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An Australian vanadium leader
QEM Limited: Vanadium and Energy Resource Development in Queensland’s North West Minerals Province
QEM Limited (ASX:QEM) is an emerging Australian critical minerals and energy company advancing its flagship Julia Creek project in Queensland’s North West Minerals Province. Hosting one of the world’s largest vanadium deposits—with a JORC resource of 2.87 billion tonnes at 0.31 percent V₂O₅— and a co-located contingent oil resource of up to 654 million barrels, Julia Creek offers significant scale and dual commodity upside.
QEM’s dual-commodity model provides investors with rare exposure to both vanadium—vital for long-duration grid storage—and liquid fuels that support Australia’s energy security. This diversified strategy positions QEM to capitalize on two high-growth markets: renewable energy storage through vanadium flow batteries and domestic fuel production in a nation that imports ~93 percent of its liquid fuels.
The Julia Creek project benefits from proximity to key road, rail, and planned power infrastructure, including the government-backed CopperString high-voltage line, helping reduce capital intensity. Supported by favorable market trends, strong policy backing, and an experienced leadership team, QEM is progressing toward a final investment decision and long-term production.
Company Highlights
- Dual-revenue Commodity Model: QEM’s Julia Creek Project is uniquely positioned to produce both high-purity vanadium pentoxide and liquid transport fuels, offering two robust and diversified revenue streams.
- Massive Resource Scale: One of the world’s largest vanadium deposits, co-located with 654 MMbbls of in-situ oil resource, with 6.3 MMbbls classified in the 1C category and 94 MMbbls in 2C.
- Strong Economics: 2024 Scoping Study delivered a post-tax NPV of AU$1.1 billion and 16.3 percent IRR for a 30-year mine life based on just a portion of the tenement area.
- Strategic Location & Infrastructure: Located within Queensland’s North West Minerals Province, adjacent to key infrastructure and the planned CopperString high-voltage transmission line.
- Energy Transition Exposure: Focused on supplying vanadium for long-duration energy storage applications such as vanadium flow batteries and addressing Australia’s transport fuel import dependency.
This QEM Limited profile is part of a paid investor education campaign.*
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QEM Limited
Investor Insight
With a clear focus on critical minerals and energy security, QEM Limited is advancing one of the world’s most unique dual-commodity projects. Backed by a highly experienced management team and growing government support, QEM is positioned to become a leading Australian supplier into the global energy transition and domestic fuel security markets.
Overview
QEM Limited (ASX:QEM) is an emerging Australian critical minerals and energy developer focused on unlocking the full value of its flagship Julia Creek vanadium and energy project, located in Queensland’s North West Minerals Province (NWMP). The project is one of the largest vanadium deposits in the world, underpinned by a globally significant JORC resource of 2.87 billion tonnes at 0.31 percent vanadium pentoxide (V₂O₅), and a co-located contingent oil resource of up to 654 million barrels.
QEM’s dual-commodity model sets it apart – offering investors rare exposure to both vanadium for long-duration grid energy storage and liquid fuels that address Australia’s critical energy security needs. This diversified approach allows QEM to capitalize on two high-growth global markets: vanadium for renewable grid storage (i.e., vanadium flow batteries) and domestic fuel production in a country currently importing ~93 percent of its liquid fuel needs.
The Julia Creek project’s strategic proximity to essential road, rail and future power infrastructure, including the government-backed CopperString high-voltage line, further reduces capital intensity. With favorable market trends, supportive policy frameworks, and a capable leadership team, QEM is advancing toward final investment decision (FID) and long-term production.
Company Highlights
- Dual-revenue Commodity Model: QEM’s Julia Creek Project is uniquely positioned to produce both high-purity vanadium pentoxide and liquid transport fuels, offering two robust and diversified revenue streams.
- Massive Resource Scale: One of the world’s largest vanadium deposits, co-located with 654 MMbbls of in-situ oil resource, with 6.3 MMbbls classified in the 1C category and 94 MMbbls in 2C.
- Strong Economics: 2024 Scoping Study delivered a post-tax NPV of AU$1.1 billion and 16.3 percent IRR for a 30-year mine life based on just a portion of the tenement area.
- Strategic Location & Infrastructure: Located within Queensland’s North West Minerals Province, adjacent to key infrastructure and the planned CopperString high-voltage transmission line.
- Energy Transition Exposure: Focused on supplying vanadium for long-duration energy storage applications such as vanadium flow batteries and addressing Australia’s transport fuel import dependency.
Key Project
Julia Creek Vanadium and Energy Project
QEM’s flagship Julia Creek vanadium and energy project is a globally significant, dual-commodity resource positioned to supply two critical markets: vanadium for grid-scale long-duration energy storage and liquid transport fuels for Australia’s energy security. Located within the North West Minerals Province (NWMP) of Queensland, the project spans over 250 sq km across four contiguous exploration permits. The resource is situated close to vital infrastructure, including highways, rail corridors and the proposed CopperString 2.0 high-voltage transmission line, which makes logistics, permitting and development significantly more streamlined.
The deposit hosts one of the largest vanadium resources globally, with a JORC 2012-compliant mineral resource estimate totaling 2.87 billion tonnes at an average grade of 0.31 percent V₂O₅, comprising 461 million tonnes in the indicated category and 2.41 billion tonnes in the inferred category. The vanadium mineralization is hosted within oil shale units at shallow depths amenable to open-pit mining. The mineralized zones exhibit favorable in situ bulk densities (~2.2 g/cm³) and lateral continuity, making them ideal for large-scale extraction.
Importantly, co-located within the same ore body is a substantial contingent petroleum resource, compliant with SPE-PRMS 2018 standards. This oil-shale-based petroleum-in-place estimate totals 654 million barrels in the 3C category, with 94 million barrels in 2C, and a 1C resource of 6.3 million barrels, based on a 90 percent recovery assumption. The economic cut-off of 40 litres/tonne was applied, and the resource is unrisked. Oil yield across the resource averages 68 litres per tonne in the higher-grade zones (OSU/OSL). The project’s dual-commodity model – targeting simultaneous production of V₂O₅ and synthetic transport fuels – is a core differentiator compared to peers focused solely on oxidized vanadium zones.
The 2024 scoping study outlines a base-case scenario with robust economics. The study assumes a 5.1 Mtpa ROM operation with a mine life of 30 years, producing an average of 10,571 tonnes of V₂O₅ and 313 million litres of transport fuel per annum. The post-tax NPV (8 percent) is AU$1.1 billion, with a 16.3 percent internal rate of return and a five-year payback period. Total CAPEX is expected to be around AU$1.1 billion. Operating costs are competitive, with V₂O₅ production estimated at US$5.80/lb and fuel production at AU$0.59 per litre, supported by co-generation, waste heat recovery and renewable energy inputs.
Metallurgical test work has confirmed the ability to recover high-purity vanadium pentoxide through a leach-precipitation-calcination route, with further flow sheet optimization underway at the University of Queensland. QEM is investigating hydrogen-assisted oil upgrading and has entered into a framework agreement with Potentia Renewables to power operations and generate green hydrogen for use in the synthetic fuel upgrading process. This integration of renewable energy and hydrogen into the production flow sheet represents a significant innovation and ESG advantage, lowering Scope 1 and 2 emissions.
QEM has made rapid progress across permitting, stakeholder engagement, flow sheet development and ESG transparency. It recently achieved Coordinated Project designation from the Queensland Government, completed its environmental impact statement terms of reference, and is preparing for a drilling campaign and pre-feasibility study (PFS) initiation in late 2025.
QEM’s strategic location within the NWMP ensures strong access to skilled labor, water sources and transport routes. The company also benefits from Queensland’s designation of the Julia Creek-Richmond corridor as a Critical Minerals Precinct, with access to government-backed funding programs such as the Critical Minerals Production Tax Incentive, which offers a 10 percent tax credit on downstream processing through 2040, and the $1.2 billion Critical Minerals Strategic Reserve. The planned PFS will incorporate outcomes from ongoing metallurgical testing, infill drilling and EIS data collection. The company’s development timeline targets FID by 2027 and first production by 2030, supported by parallel discussions with offtake partners and engineering groups.
Management Team
Gavin Loyden – Founder
Gavin Loyden is the founder of QEM and the driving force behind acquiring and developing the Julia Creek resource. With over 12 years in mining, Loyden has overseen the company’s exploration, permitting and renewable energy partnerships, ensuring alignment with ESG priorities and long-term shareholder value.
Robert Cooper CEO and Managing Director
Robert Cooper brings more than 30 years of global mining experience, including senior executive leadership and non-executive board roles across the resources and battery materials sectors. He served as MD/CEO of New Century Resources, and prior to that, as CEO of Round Oak Minerals, a wholly owned subsidiary of Washington H. Soul Pattinson (ASX:SOL). He has held senior roles with Discovery Metals, BHP and has been a non-executive director at Novonix (ASX:NVX), Syndicated Metals and Verdant Minerals.
Tim Wall – Chair
Tim Wall brings more than 35 years of experience in global oil refining, hydrogen, ammonia and energy infrastructure. He held senior executive roles at multiple ASX 100 companies and past-president of global manufacturing at Incitec Pivot Limited (ASX:IPL). He is a respected voice in energy transition strategy.
Daniel Harris – Non-executive Director
Daniel Harris is a globally recognized vanadium expert with 40+ years in the sector. He is the former director of US Vanadium LLC and past executive at EVRAZ, Vametco Alloys and Australian Vanadium (ASX:AVL). He brings unparalleled depth in vanadium market dynamics and project evaluation.
