Australian Vanadium Ltd (ASX:AVL) has signed a letter of intent (LOI) to negotiate and sign a binding technical services and purchase agreement for AVL’s vanadium products.

The LOI is with Hebei Yanshan Vanadium and Titanium Industry Technology Research Co Ltd, a subsidiary of the world’s third-largest vanadium producer.

The subsidiary was set up to co-ordinate and commercialise research and development innovation in the steel industry.

As per the LOI, AVL will provide a product sample to Yanshan Vanadium Titanium for testing.

AVL MD to visit HBIS Chengsteel this month

AVL’s managing director Vincent Algar said: “We were invited by Yanshan Vanadium Titanium to attend a conference in Hebei last year and to meet with the company.

“Discussions were productive and highlighted a desire by Yanshan Vanadium Titanium to become more involved in AVL’s Project.

“We are now visiting Chengde this month to further these discussions and move towards a formal agreement.”

AVL continues to advance the development of its world-class Australian Vanadium Project in Western Australia.