Vanadium Resources (ASX: VR8) enters offtake MoU with Enerflow Technology

Highlights

• VR8 has signed a non-binding MoU with Enerflow Technology for the offtake of V2O5 production from its Steelpoortdrift Vanadium Project.
• The MoU allows for the provision of 4,000 metric tonnes per annum (ktpa) of V2O5 flake for five years.
• The MoU entails an option to extend the supply for an additional five years.
• The MoUs with Hexiang and Enerflow represent ~73% of the planned V2O5 production from the first phase of the project.

Vanadium Resources Limited (ASX: VR8; DAX: TR3) has signed a Memorandum of Understanding (MoU) with Enerflow Technology Co., Ltd, a vanadium flow batteries producer. Enerflow is a subsidiary of Tian’en Energy Co., Ltd.

The non-binding MOU is aimed toward the offtake of V2O5 production from VR8’s Steelpoortdrift Vanadium Project. The MOU allows for the provision of 4,000 metric tonnes per annum (tpa) of V2O5 flake for five years. It also has an option to extend the supply for an additional five years.

The MOU also provides a framework for future discussions regarding pricing, product quality, and other terms related to offtake agreements.

VR8 previously announced an MoU with Panjin Hexiang New Materials Technology Co., Ltd.

Together, these agreements with Hexiang and Enerflow cover 8ktpa (approximately 73%) of the planned 11ktpa V₂O₅  production for Steelpoortdrift’s Phase 1 operations, underlining growing demand for vanadium sources from China.

Commenting on the MoU, VR8’s Chief Executive Mr John Ciganek said,

“We are delighted to announce another offtake MOU shortly after the conclusion of an MOU with Hexiang. Enerflow’s interest in VR8 testifies to the prominent role VFBs are starting to play in the Battery Energy Storage Solution space. Enerflow is on the cutting-edge of this market, having been a supplier for multiple projects, including the construction of one of the world’s largest all iron chromium energy storage projects, as well as the construction of China’s first hydrochloric acid based VFB power station. VR8 considers Enerflow to be an ideal partner in China given its strong technical background in the Chinese energy storage market.”

The company continues negotiating additional offtake agreements with Chinese, Japanese, Korean, and European end-users and traders for the remaining planned production.

Vanadium has been increasingly recognised in the expanding global energy storage market, notably in VFBs, alongside the persistent demand from the steel and alloy industry. 

Shares of VR8 were trading at AU$0.042 on 10 May 2024.