All You Need To Know About Vanadium Redox Flow Batteries (VRFBs)

In an era of the electric vehicle, the components used in rechargeable batteries play a dominant role in the consumption of electric vehicles worldwide. Lithium has been in boom lately for its importance in the manufacturing of lithium-ion batteries, but it is witnessing a tough fight from the most commercially available substitute Vanadium redox flow batteries (VRFBs).

Vanadium redox flow batteries (VRFBs) uses electrochemical technology to store potential energy in a rechargeable flow battery. It employs vanadium ions in four different oxidation states for large-scale energy storage applications.

Compared to Lithium-ion batteries, Vanadium redox flow batteries are expensive but are seen as an attractive alternative to lithium-ion for their longer lifetimes, reduced fire risk and easy recyclability. One of the most interesting features of Vanadium redox flow batteries (VRFBs) is their potential to separate power and energy capacity in a flow battery, with power determined by the size of the stack and capacity determined by the volume and concentration of electrolyte.

However, system cost and electrolyte imbalance are the major challenges in Vanadium redox flow batteries. VRFBs suffer from electrolyte imbalance that can lead to cumulative capacity loss if the electrolytes are not rebalanced. Also, cost is a major issue in the success of VRFBs, which undermines its potential in a highly competitive market against Polymer electrolyte fuel cells (PEFCs) and Lithium-ion batteries among other energy storage methods.

Let’s have a look at three vanadium-focused minerals exploration companies, listed on the Australian Securities Exchange.

Australian Vanadium Limited (ASX: AVL)

Australian Vanadium Limited is an ASX-listed resource company that is primarily engaged in the exploration of vanadium, titanium and other economic metals. The market capitalisation of the company sits at $27.63 billion, with 1.97 billion shares outstanding on-market.

AVL recently released the assay results obtained on the successful drilling conducted at its Australian Vanadium Project in April 2019. The project, located near Meekatharra in Western Australia, returned massive magnetite intersections in the metallurgical drill program of 30 holes.

Australian Vanadium explained that the diamond core holes were drilled vertically rather than perpendicular to the dip of the strata, maximising the amount of mineralised material obtainable from the hole, whilst still drilling the entirety of the mineralised units from top to bottom.

On completion of this drilling program, the company confirmed the presence of a high-grade vanadium-rich zone grading over 1.2% V₂O₅ at depths. AVL informed that the drill holes targeted extensions to the resources at the bottom of and below the current pit design, where the deposit remains open at depth.

AVL’s Managing Director Vincent Algar stated that these diamond drill holes would support new de-risked resources that can feed the Definitive Feasibility Study (DFS) mine schedule.

The drill holes are reportedly to be used in the company’s ongoing pilot-scale metallurgical test program, which forms a critical part of the ongoing Definitive Feasibility Study at the Project. The report read that high-grade zones were intersected in the majority of holes, showing the consistency of grade already associated with the deposit from previous work by AVL; most of the holes intersected at an interval of 1% and 1.25% V₂O_5.

AVL stock last traded at $0.014. There has been no daily-price change on 29 July 2019, however, AVL’s daily volume changed by 2.357 million in a day-trade.

Over the past one month, the stock has surged up by 7.69% but has declined by 74.07% over a long-term of 12 months.

Tando Resources Limited (ASX: TNO)

On 29 July 2019, Tando Resources Limited completed the acquisition of majority interest in Steelportdrift Vanadium Project while also completing the change in official name and ASX code.

Acquisition of SPD Vanadium Project –Tando has completed the ownership restructuring to hold 73.94% of the Steelpoortdrift Vanadium Project that would now allow the company to deal with certainty in terms of developing the asset through off-take discussions.

Tando believes that this new ownership structure would assist it in ensuring that the company is transaction ready. Restructure was reportedly approved by shareholders at EGM on 26th July.

Base Case Key Metrics for Phase 1 at the Steelpoortdrift Vanadium Project (Source: Company Announcement)

As of now, the company has acquired 50% of the SPD Vanadium Project with the balance of up to 73.95% subject to approval under S11 of the South African Mineral and Petroleum Resources Development Act 2002.

Change in Name- Tando Resources Limited will now be called ‘Vanadium Resources Limited’ and will have a new ASX code ‘VR8’.

The directors believe that the new company name will better reflect an emerging world-class Vanadium resource. Tando is of the view that the decision to change the company’s name and associated ASX code, will assist in gaining maximum recall from prospects in future planned marketing campaigns.

Management Change- The company today announced the new board members in place of outgoing directors Jeremy King and Luigi Matteucci. It includes the appointment mining industry business magnates Mr Nico van der Hoven and Mr Jurie Wessels.

Managing Director, Bill Oliver stated, “Nico and Jurie have developed a substantial chrome mining operation in the region which freights to the same port intended for VR8. Their combined practical knowledge of mining in the region and in South Africa will be a major positive as the project develops.”

Tando’s fast-track strategy- The company is presently focused on its new strategy to both fast-track the project and expand future processing and commercialisation objectives. It informed that the Steelpoordrift Vanadium Project has already attracted significant global interest from major mining corporations, trading houses, steel mills and other end users.

Mr Oliver stated that the company aims to explore all possibilities to ensure that it continues the development with the accretive approach in mind. He added: Subsequently, Tando will collaborate with South African and Chinese experts.

Stock Performance- TNO stock price surged up 3.947% to last trade at $0.079 on 29 July 2019. Over the past 12 months, the stock has declined by 55.29% including a negative price change of 24.00% in the past three months.

Pursuit Minerals Ltd (ASX: PUR)

Pursuit Minerals holds extensive Mineral Reservations and two Exploration Licences covering the Koitelainen, Karhujupukka and Ala Postojoki Vanadium Projects in northern Finland. The company recently reported a substantial increase in vanadium mineralisation from the Airijoki Project in Sweden and the Koitelainen Project in Finland on the mass recovery and overall recovery of vanadium into vanadium magnetite concentrates in metallurgical test work.

Pursuit Project Locations in Finland and Sweden (Source: Company Announcement)

Pursuit stated that both Airijoki and Koitelainen have the potential to be financially robust as operations initially producing high-grade vanadium magnetite concentrates. Further upside to Pursuit’s vanadium portfolio may reportedly come from a second phase of development involving construction of a centralised vanadium magnetite concentrate processing facility to produce V2O5 flake.

During the quarter ended 30 June 2019, the company implemented cost reduction program with expected cost savings of $150,000 per quarter. It further continues to have discussion with ongoing with potential strategic partners to assist in the assessment and potential development of the Airijoki and Koitelainen Projects.

On 3 July 2019, the Company announced it would raise up to $1.63 million, consisting of a $0.89 million two tranche placement and a non-renounceable $0.74 million rights issue.

PUR shares last traded at $0.008, down 20%, on 29 July 2019. Over the past 12 months, the stock has declined 89.69% including a negative price change of 58.33% recorded in the past three months.

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