Vanadium: from zero to hero
Driven by the energy transition, an increasing portion of our energy is coming from renewable sources. As the renewable energy market expands, so do opportunities for improvement and investment. One growing challenge is coming to light across both renewable and traditional energy markets: energy storage.
While lithium-ion batteries have long been a hot topic for renewables, lithium isn’t the only battery-material anticipating a boom in the coming years.
More options for storage and delivery are increasingly needed. Storage, whether on a grid or battery level, and delivery options need just as many resources directed to innovation and development as energy generating technologies.
Vanadium is vying to become another favourite among the likes of minerals like lithium. Vanadium flow batteries (VFBs), originally invented in Australia in the 1980s, have popped into the picture as another viable storage solution as these batteries are potentially safer, cheaper and longer lasting than their lithium counterparts.
What’s holding our vanadium boom back? Like other critical minerals, it comes down to an anticipated supply-demand imbalance.
Under a net zero emissions by 2050 scenario, the IEA estimates vanadium demand to grow to 556.35kt in 2040, more than 15 times the expected demand of 35.23kt in 2030.
There’s room for further growth driven by increased adoption of VFBs. According to the IEA, if VFBs achieve widespread commercialisation earlier than expected, then utility-scale storage technology could likely shift towards vanadium flow batteries, resulting in 2.5 times more demand for vanadium compared to the base case in 2030 and 50% more demand in 2040.
Where will all this vanadium come from?
Despite being the birthplace of the VFB technology, Australia currently has no operating vanadium mines.
Now is the time to invest in the much-needed vanadium projects that will kick off our vanadium industry and flip the equation for the supply-demand imbalance.
In the second instalment of our Critical Minerals Outlook series, we spotlight the vanadium projects powering our energy transition dreams.
Richmond Vanadium Technology (ASX: RVT) managing director Jon Price speaks with the Australian Mining Review about the current outlook of vanadium.
The current vanadium price is relatively low, which begs the question — why would new mines start up right now?
Mr Price says that for Richmond, the VFB is the number one growth opportunity.
“What’s growing demand is the adoption of the vanadium flow battery,” he said.
“In Asia — China in particular — Northern Europe and North America, the adoption of that battery is growing very quickly.
“For every gigawatt hour of battery storage, you need 10,000t of vanadium pentoxide.
“This drives a massive growth phase around 2027-28, where there is going to be a supply crunch and there’s going to be burgeoning demand on the back of batteries.
“That will put market forces onto the price, and we will start to see a price around $9 or $10/lb again.
“That is a trigger for us to turn the project on.”
Mr Price says that despite creating the technology, Australia’s adoption of the VFB is low.
“[Richmond is] focused on bringing in two demonstration batteries next year because what we are hearing from government and investors is that we need to become more comfortable with the technology,” he said.
“VFBs are the best battery on the planet for greater than six-hour energy storage. There isn’t really a battery system that can compete at six hours or more and Australia and the rest of the world need eight to 10 hours of storage to reduce reliance on fossil fuel.”
Mr Price says there’s several factors that make the batteries so competitive.
“The first is that it’s a cold battery meaning it doesn’t generate heat, so it has no risk of thermal runaway and fire,” he said.
“It’s a big liquid battery that takes up a big footprint, so it’s ideal for long-duration, grid-scale, stationary storage.
“The vanadium electrolyte in the battery has an infinite life and it never degrades.
“This means you have a battery system with a 30-year warranted life. After 30 years, the vanadium electrolyte can be pumped and transferred into a new set of equipment to run for another 30 years.
“From a levelized cost of storage, nothing can really compete with the VFB because the electrolyte never degrades and will be here forever.
“It’s also very adaptable, scalable and 98% recyclable, making it very environmentally friendly.”
Australia needs new vanadium projects to make renewables a reality.
“Australia has one of the largest resources of vanadium in the world, and we produce none, so not only are we securing Australia and potentially the western world’s supply chain, but we are actually creating a new industry from scratch,” Mr Price said.
“That’s exciting because ultimately regional Australia needs these batteries.
“Regional Australia has plenty of solar and wind resources but needs these batteries.
“Those regional areas in Australia can be powered up with the batteries and we can create an industry for vanadium to meet the domestic market as well and start supplying the rest of the world.”
Vanadium’s prospects
The Australian Trade and Investment Commission’s (Austrade) Critical Minerals Prospectus showcases five investment-ready vanadium projects in Australia: Australian Vanadium’s (ASX: AVL) Australian Vanadium Project, Richmond Vanadium Technology’s Richmond-Julia Creek Vanadium Project, Idemitsu Australia and Vecco Group’s Vecco critical minerals project, Surefire Resources’ (ASX: SRN) Victory Bore project and Atlantic’s Windimurra project.
Australian Vanadium Project
Overview: The Australian Vanadium Project (AVP) in WA anticipates production of 11,200tpa of high-purity vanadium pentoxide product and 900,000tpa of iron with a minimum mine life of 25 years.
The project based on an open pit mine with on-site crushing, milling and beneficiation (CMB) and a processing plant located near Geraldton for conversion to high-quality vanadium pentoxide. Following the recent merger, metallurgical testwork confirms the trend of higher vanadium and iron concentrate grades towards the south of the combined project. The processing plant will use an alkaline roast leach and ammonium metavanadate extraction process to produce vanadium pentoxide and iron concentrate.
Status: AVL is undertaking an optimised feasibility study, with the aim of improving the project’s technical and economic results by integration of the northern and southern parts of the deposit.
AVL continues to progress the approval process and recently the WA Minister for Environment provided approval of the implementation of the Gabanintha vanadium project, which forms part of the project. Engagement with the Traditional Owners of the project mine site, the Yugunga-Nya People, is underway exploring and further defining the basis for an enduring partnership.
The project has recently been selected as a lead agency advice and support project under the WA Government’s Lead Agency Framework.
Potential: AVL is developing a scalable turnkey utility-scale battery energy storage system (BESS) using vanadium flow battery (VFB) technology to meet the demand for long duration storage in Australia’s energy market. Initial analysis on potential 100MW / 800 MWh VFB BESS demonstrated competitiveness with similar sized lithium-ion batteries. A growing VFB market unlocks vanadium demand from the AVP. AVL is seeking offtake, debt and equity.
Richmond-Julia Creek Vanadium
Overview: The Richmond-Julia Creek Vanadium project in Queensland anticipates production of 790,000tpa of vanadium concentrate with a minimum mine life of 25 years with potential for over 100 years.
The project is based on shallow (2-25m) open-cut, free-dig mining of 4.2mtpa ore which will be processed on site via a conventional floatation process to produce vanadium concentrate. Mined areas will be progressively rehabilitated. Metallurgical testwork and flow sheet design is underway aimed at delivering an innovative process for production of about 12,700tpa of vanadium electrolyte from vanadium concentrate.
Status: Following a successful pre feasibility study completed in 2021, a bankable feasibility study is now well underway, examining production of vanadium electrolyte for use in VFBs, in addition to vanadium concentrate production from the project. The draft environmental impact statement was submitted in 2024 and is currently being updated to address government agency comments prior to public review. Application was lodged in 2024 for the mining lease. Native Title has been extinguished over the project area, however, RVT has signed a Cultural Heritage Management Agreement with the Wanamarra people. Discussions are welcomed on financing or offtake.
Potential: RVT’s vision is to be mining, concentrating and producing high-purity vanadium in Australia, over the fence from electrolyte and battery makers. This is aligned with our recent collaboration agreement with world leading battery and renewable energy manufacturers and the Queensland Government who are building a common user facility and funding construction of the CopperString 2032 electricity transmission line. RVT has adopted the World Economic Forum’s ESG framework to guide progress.
Vecco Critical Minerals Project
Overview: The Vecco Critical Minerals Project in Queensland anticipates production of about 8.7ktpa of high purity vanadium pentoxide, with a minimum mine life of 28 years. This will be supplied to Vecco-owned electrolyte manufacturing facilities in Townsville and the US to collectively produce about 56MLpa of vanadium electrolyte. In addition, the project will produce highly valuable by- products including high purity alumina (HPA) and molybdenum. The project is based on shallow (2-25m) open-cut, free-dig mining of 4.2mtpa of ore which will be processed on site via a conventional floatation process to produce vanadium concentrate. Mined areas will be progressively rehabilitated. Metallurgical testwork and flow sheet design is underway aimed at delivering an innovative process for production of about 12,700tpa of vanadium electrolyte from vanadium concentrate.
Status: The pre feasibility study completed in May 2024 confirmed attractive economics for the Vecco Critical Minerals Project based on open-pit mining and on-site processing to produce about 8.7ktpa of high purity vanadium pentoxide.
The definitive feasibility study is underway, and the project is advancing
towards final investment decision, with strong equity support from strategic shareholders (Idemitsu and Coeclerici Group). Recently declared a Coordinated Project by the Queensland Government, Vecco is targeting environmental impact statement submission in HY CY25 and approvals by early 2026. No Native Title exists over the project area. Vecco has engaged with Traditional Owners in relation to cultural heritage. As Vecco progresses toward final investment decision, the company is actively
seeking offtake agreements and welcomes discussions with strategic investors and
financing partners to support project development.
Potential: The operation will mine and refine high-purity vanadium, with refined feedstock transported to Vecco-owned electrolyte manufacturing facilities in Townsville and the US.
The integrated vanadium supply chain is being developed in a non-exclusive collaborative partnership with Idemitsu and Sumitomo Electric (leading VFB manufacturer). Supported by a significant, shallow, high-quality vanadium resource, the project positions Vecco as a key supplier of vanadium electrolyte for the growing
long-duration energy storage market.
Victory Bore
Overview: The Victory Bore project in WA anticipates production of 1.25mtpa of vanadium-titanium magnetite concentrate over a minimum mine life of 24 years. This concentrate will produce 2,580tpa of high-purity vanadium pentoxide, 5,760tpa of ferrovanadium, 192,880tpa of titanium slag, 364,480tpa of pig iron, 245,480tpa of high-purity iron oxide pigment and 245,480tpa of high-grade iron ore.
The Victory Bore project contains a world class vanadium-titanium magnetite resource, located near existing utilities and infrastructure in the mid-west of WA. The mineralisation extends for 20km along strike with significant exploration potential to extend the current 465mt total mineral resource. Open-cut mining and on-site beneficiation will produce a magnetite-vanadium-titanium concentrate to be shipped from Geraldton Port for final products processing in the Kingdom of Saudi Arabia (KSA). Lower power and reagent costs in KSA will reduce operating costs.
Status: The company is seeking investment, offtake and development partners for its Victory Bore in Australia and KSA. The pre-feasibility study was completed in December 2023 with attractive economics. DRA Global have been appointed in 2024 to lead the bankable feasibility study which will be commenced once funding is in place.
A bulk sample of concentrate has been prepared for customer testing and the company has a memorandum of understanding with the Saudi Arabian Government for final products processing in KSA. A mining license application is in place.
Environmental and Native Title surveys have been completed and discussion with Traditional Owners commenced, with no impediments identified.
Potential: A key objective of the project is to produce high-purity electrolyte-grade vanadium pentoxide for production of battery-grade vanadium electrolyte used in vanadium redox batteries (VRFBs). A new leach process for vanadium extraction is in development by the company to reduce carbon emissions for the project. The project will have significant social and economic benefits for the region and state and in KSA.
Windimurra
Overview: The Windimurra project in WA anticipates production of 7.6ktpa of high-purity vanadium pentoxide flake over a minimum mine life of 31 years.
The project will utilise proven open-cut mining and vanadium production processes including ore milling, magnetic separation, salt roasting, leaching, and vanadium recovery to produce the final product. Atlantic Vanadium (AVPL) continues to investigate and develop downstream processing options in anticipation of becoming a vertically integrated vanadium flow battery producer.
Status: AVPL is completing an updated definitive feasibility study for the Windimurra project redevelopment and expects to make final investment decision for the project redevelopment at end 2025. Windimurra has all development approvals and Traditional Owner agreements in place. AVPL is currently in discussions with prospective project financiers and strategic offtake partners for the
Windimurra project, however the company welcomes interest from prospective project financiers and offtake partners.
Potential: Windimurra is expected to be the world’s next major primary vanadium producer, leveraging significant existing infrastructure at the project site. According to AVPL, Windimurra enjoys competitive advantages including significant historic investment, making it the lowest capital intensity primary vanadium project development in the world; redevelopment works consist of new milling and beneficiation plant and recommissioning of existing infrastructure, plant and equipment; all critical infrastructure (roads, mine pit, gas pipeline, kiln, power station and village) already constructed and under care and maintenance; completion of electrolyte production study for both onsite and offsite (Perth area) options; integration of mining updates into financial model, updated definitive feasibility study is pending final drafting; VRFB demonstration project at Windimurra announced and ore reserves which deliver an initial 31-year mine life with upside through additional large mineral resources.
