Australian Vanadium receives $14.7m grant to create vanadium battery industry

Australian Vanadium (ASX: AVL) has received a $14.7m grant from the Federal Government as part of the Modern Manufacturing Initiative – Manufacturing Collaboration Stream.

In May 2023, Australian Vanadium and the Federal Government executed a Commonwealth grant agreement to the value of up to $49m. The grant will assist AVL, in collaboration with industry partners, to create an Australian vanadium battery industry.

The grant funds eligible activities to construct and commission a crushing, milling and beneficiation plant and high-purity vanadium processing facility capable of using green hydrogen to partly fuel the extraction process for the project.

The critical mineral extraction process is a key precursor for vanadium electrolyte manufacturing which Australian Vanadium is already undertaking at its vanadium electrolyte facility in Perth.

The grant supports all stages of the vanadium production chain, from mining and concentrating, to vanadium processing for use in electrolyte production.

Australian Vanadium chief executive Graham Arvidson says the company is grateful to receive the second grant payment.

“AVL continues to work closely with the Australian Government and we are grateful to receive this second milestone payment,” he said.

“It is a testament to the outstanding work being undertaken to progress the Australian Vanadium project, which will benefit not only the Mid West region of WA where the project will operate, but Australia more broadly, as we continue to realise the onshore vanadium value chain from pit-to-battery that will support Australia’s energy transition ambitions.”

The first grant payment, comprising of $9.8m, was received in June 2023, and Australian Vanadium has received a total of $25.4m in payments.

Payment of the remainder of the grant is subject to milestones and compliance by Australian Vanadium with its obligations in agreement to the grant.

Final payment is scheduled for August 2025.