Australian Vanadium Limited (AVL) and the Australian Government, represented by the Department of Industry, Science and Resources, have signed a Commonwealth Grant Agreement as part of the Modern Manufacturing Initiative – Manufacturing Collaboration Stream.
The Grant provides up to $49 million in financing support for the Australian Vanadium Project, which will help AVL establish an Australian vanadium battery sector in conjunction with industry partners. The Grant finances qualifying activities to build and commission a concentrator and high-purity vanadium processing facility capable of utilising green hydrogen as part of the Project’s extraction process. According to AVL, the critical mineral extraction technique is a prerequisite for the production of vanadium electrolytes. The Grant’s scope includes assistance for all phases of the vanadium production value chain, from mining and concentrating through vanadium processing for use in electrolyte manufacture, a critical enabler for the Australian vanadium redox flow battery sector.
As part of the Grant activities, AVL will also engage with Bryah Resources Limited to investigate possibilities for economically extracting cobalt, nickel, copper, and gold from the Project. Broader actions required to complete the Project, such as mine development and supporting infrastructure, will be supported from sources other than the Grant.
“AVL has been working closely with the Australian Government and we are pleased to announce execution of the Agreement. The Grant will be of great benefit to AVL as we seek to optimise and finalise our financing and offtake arrangements and continue to move the Project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly. We are very grateful to the Australian Government and the grant team who worked tirelessly to finalise this important outcome,” AVL CEO Graham Arvidson said.
The Agreement begins on 29 May 2023 and concludes on 31 July 2026.
The Grant will be paid out in instalments during the term of the Agreement, subject to milestones and the Company’s compliance with its responsibilities under the Agreement. The Company will receive a first payment of $9.8 million in June 2023, followed by three more instalments, with the last payment slated for August 2025.
