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Following the increasing support for the strategic development of vanadium projects in Australia, Australian Vanadium Ltd (ASX:AVL) has recently received a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM) for potential financing of up to US$31 million for the Australian Vanadium Project. This significant backing from EXIM, the official export credit agency of the U.S. Federal Government, is associated with the intention to source equipment from the United States for the project.
As part of the optimised feasibility study, Australian Vanadium Ltd aims to enhance the U.S. content within the project. This includes sourcing additional equipment, goods, and services that may positively impact the financing arrangement with EXIM. Any further financing from EXIM will depend on its established policies, procedures, due diligence, and approval by its board of directors.
The CEO of Australian Vanadium Ltd, Graham Arvidson, stated that receiving support from agencies such as EXIM illustrates the advanced and significant nature of the project. The company is actively collaborating with various export credit agencies globally, including those in Australia, alongside commercial banks, to secure necessary financing for the project's development. Vanadium is categorized as both a critical and battery mineral, with numerous countries striving to establish secure supply chains. Collaborating with the United States aligns with the strategic objectives of the Australian Federal Government regarding the critical and battery mineral sectors.
The Australian Vanadium Project will comprise a mine, a crushing, milling, and beneficiation plant located at Gabanintha, near Meekatharra, as well as a downstream vanadium processing plant at Tenindewa, near Mullewa. In addition to these facilities, the company operates a vanadium electrolyte manufacturing facility in Perth. Progress continues on the optimised feasibility study for the project, with key upcoming milestones that include finalising a detailed mining plan, optimising project infrastructure, and completing the layout and design criteria for the project.
A recent achievement for Australian Vanadium Ltd involved successfully completing factory acceptance testing of a vanadium flow battery (VFB) using the company’s vanadium electrolyte. This battery is set to be installed at a Horizon Power site in Kununurra, Western Australia.
As one of the most advanced vanadium projects worldwide, the Australian Vanadium Project at Gabanintha contains a substantial resource, reporting 395.4 million tonnes at 0.77% vanadium pentoxide (V2O5). This includes a notable high-grade zone of 173.2 million tonnes at 1.09% V2O5. These figures were reported in accordance with the JORC Code 2012 and highlighted a significant increase in the high-grade measured and indicated mineral resource.
Additionally, the company’s renewable energy and energy storage subsidiary, VSUN Energy, is focused on cultivating the Australian market for vanadium flow batteries for long-duration energy storage. Established in 2016, VSUN Energy has gained recognition for its expertise in VFB technology. The vertical integration strategy of Australian Vanadium Ltd encompasses processing vanadium to high purity, manufacturing vanadium electrolyte, and partnering with VSUN Energy to implement projects related to renewable energy generation and VFB storage.
