Australian Vanadium Ltd (ASX:AVL) is higher after signing a memorandum of understanding (MOU) for potential offtake of vanadium products with Enerox GmbH, a global market leader of CellCube vanadium redox flow battery (VRFB) energy storage systems.
The MOU creates a cooperative environment to establish binding agreements for offtake of vanadium pentoxide and vanadium electrolyte from the planned Australian Vanadium Project at Gabanintha to support global sales and services of Enerox’s VRFB product CellCube.
The extensive MOU provides for:
- Vanadium pentoxide offtake arrangements to support global VRFB sales by Enerox;
- A vanadium electrolyte facility in Australia to supply Enerox battery installations, adding downstream value in the battery metal supply chain; and
- Assistance with arrangement of vanadium electrolyte leasing.
Shares have been up as much as 25% to 1.6 cents intra-day, a new 12-month high.
Solar and CellCube VRFB installation at a commercial and industrial site. Image ©Enerox.
“Crucial for future growth”
Managing director Vincent Algar said: “Through AVL’s subsidiary VSUN Energy we have developed a strong relationship with CellCube and have experience with the excellent quality of their product.
“We are delighted to be able to broaden this relationship further, to include future supply of vanadium and vanadium electrolyte from the Australian Vanadium Project as the project moves towards production.
“With Enerox developing ever-larger VRFB projects around the world and in Australia, the secure supply of high-purity vanadium pentoxide will be crucial for further growth of this reliable energy storage technology as it builds its market presence.”
Additionally, AVL’s 100%-owned focused VRFB-subsidiary VSUN Energy has signed a value-added reseller (VAR) agreement with Enerox for the supply and installation of CellCube products and services in Australia.
The agreement is for a term of two years, with a two-month notice period on either side for termination.
“Very happy” to grow Australian business
Enerox and CellCube Chief executive officer Alexander Schönfeldt said: “I am very happy we are growing our Australian business with VSUN Energy as our local partner.
“Having three systems already in the region and taking the COVID situation into account, it is for us and our clients very important to have a trusted partner in Australia who is trained on our systems and who we have known for many years.
“For the increasing demand of long-duration energy storage specifically in hot and remote areas, the Vanadium Redox-Flow technology in combination with renewables is the best solution.
“Having a local supply chain and value creation will be a major benefit for the people and business in Australia.”