Australian Vanadium Ltd (ASX:AVL) has signed a letter of intent (LOI) with a German vanadium redox flow battery (VRFB) manufacturer which could lead to the company supplying vanadium pentoxide and/or vanadium electrolyte.
SCHMID is keen to secure a material supply of vanadium for VRFB batteries and recognises AVL’s Gabanintha project near Meekatharra in Western Australia as a potential source.
The letter has been signed on a non-binding basis and is subject to commercial competitiveness.
AVL’s managing director Vincent Algar said, “We have built a relationship with SCHMID over the past three years and the letter of intent solidifies our plans with them moving forward.
“For a VRFB manufacturer it is crucial to secure an ongoing supply of vanadium and with our high-grade vanadium deposit moving steadily towards production, we look forward to working closely with SCHMID as a potential client.”
In parallel, AVL’s subsidiary, VSUN Energy, has signed an LOI to offer SCHMID’s EverFlow® large-scale and telecom VRFB to its potential clients.
Algar said, “Having the relationship as a two-way partnership with VSUN Energy promoting the EverFlow® systems provides a collaborative space for us to do business.”
AVL is continuing to advance a pre-feasibility study (PFS) for the Gabanintha Vanadium Project with preparation of the initial base case scenario well advanced.
It is the first step in a series of activities enabling the delivery of a realistic and achievable study, supporting future investment decisions.
The company planned to begin a geotechnical and resource development drill program this quarter to resolve key parameters required for successful and safe long-term open pit design.
This program will also target the conversion of resources from the inferred to the indicated resource category and increase the understanding of the cobalt and base metal resource.