Australian Vanadium (AVL) has signed a memorandum of understanding (MoU) with U.S. Vanadium (USV)
* The agreement outlines a proposed offtake deal which could see USV purchase 2000 tonnes of vanadium pentoxide every year from the Australian Vanadium Project
* USV produces and sells a range of speciality vanadium chemicals, including the world’s highest purity vanadium pentoxide
* Vanadium is recognised as a critical and strategic metal and mineral in the United States and this deal follows an MoU signed just yesterday with Singapore battery producer V-Flow Tech
* On the market this morning, AVL is up 14.8 per cent and is trading for 1.6 cents per share
Australian Vanadium (AVL) has signed a memorandum of understanding (MoU) with U.S. Vanadium (USV) for the Australian Vanadium Project.
The MoU outlines the potential offtake for USV to purchase 2000 tonnes of vanadium pentoxide every year from AVL. This represents 20 per cent of AVL’s namesake project’s planned annual production.
USV produces and sells a range of speciality vanadium chemicals, including the world’s highest purity vanadium pentoxide. It has a manufacturing facility in Hot Springs, which has a role in providing vanadium products as part of the U.S. defence industrial base.
AVL is currently advancing the development of the Australian Vanadium Project. The project is one of the highest-grade vanadium projects being advanced globally with 208.2 million tonnes at 0.74 per cent vanadium pentoxide.
Vanadium is recognised as a critical and strategic metal and mineral in the United States.
AVL Managing Director Vincent Algar is pleased with the new agreement.
“Working with the highly experienced team at USV will give AVL the ability to negotiate at the highest level within the vanadium market and leverage the critical
mineral narrative with end users,” he said.
Within the team is Daniel Harris who is a director at both USV and AVL and has more than 40 years of experience in the vanadium industry.
“There is an increased emphasis on security and provenance of supply chains globally and AVL has been fielding significant investor interest from Europe and the US. The relationship with USV also validates AVL’s strong technical capability and the company’s considered approach to its feasibility studies,” he added.
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