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Australian Vanadium Limited (ASX: AVL) (AVL) is pleased to announce the completion of construction of its vanadium electrolyte manufacturing facility (“Facility”).1
KEY POINTS
- Construction of AVL’s Western Australian vanadium electrolyte manufacturing facility has been completed without injury
- Facility has potential to produce up to 33MWh of high purity electrolyte per annum
- Vanadium electrolyte production to deliver product into a growing demand market and allows for qualification of AVL material with battery manufacturers
The Facility is located in the northern suburbs of Perth and has been designed to produce up to 33MWh per year of high purity electrolyte for vanadium flow batteries (VFBs). The construction of the Facility has been supported by the majority of a $3.69 million Australian Government Modern Manufacturing Initiative grant awarded to AVL2 and demonstrates the value of investing in domestic downstream processing capability, allowing more value from Western Australia’s battery mineral endowment to be captured and retained in Australia.
Construction of the Facility was undertaken by Western Australian-based engineering company Primero Group (subsidiary of NRW Holdings, ASX: NWH) and was completed without injury. AVL has issued a certificate of practical completion to Primero Group, which allows for the formal handover of the Facility from the construction team to the commissioning team.
The Facility utilises proven electrolyte manufacturing technology which is licensed from U.S. Vanadium LLC (USV) exclusively to AVL in Australia and New Zealand. Using this technology has greatly reduced the development risk for the Facility.
USV will assist with commissioning of the Facility, which is anticipated to be completed early in 2024. The vanadium electrolyte produced by the Facility will initially be employed in the VFB projects being developed by AVL’s wholly owned subsidiary, VSUN Energy Pty Ltd, and will allow AVL to qualify its product with key global VFB manufacturers.
Demand for vanadium electrolyte within the region is expected to grow rapidly over the coming years. According to Guidehouse Insights, “Asia Pacific leads significantly, with a compound annual growth rate (CAGR) of 25.7% for revenue and 37.4% for energy capacity. By 2031, it is estimated that Asia Pacific will reach around 14.5 GWh of annual VFB energy capacity”.3
Construction and subsequent operation of the Facility demonstrates AVL’s technical capabilities and ensures that the Company remains engaged with downstream aspects of the vanadium and VFB markets.
Vanadium pentoxide for electrolyte manufacture will initially be sourced from USV, prior to supply being available from the Company’s Australian Vanadium Project in Western Australia. The experience gained from the construction of the Facility is anticipated to be of great use in the construction of the Australian Vanadium Project.
AVL’s Chief Executive Officer, Graham Arvidson comments, “We are pleased to have been able to successfully and safely execute another segment of our ‘pit to battery’ strategy through the construction of Western Australia’s first vanadium electrolyte manufacturing facility. 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.”
Figure 1 AVL and Primero Group staff at the AVL vanadium electrolyte manufacturing facility
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