Australian Vanadium Ltd (ASX:AVL) soared up to 43% on securing a $49 million competitive grant from the Australian Federal Government under the Modern Manufacturing Initiative Collaboration Stream, to be used in the development of the Australian Vanadium Project.
The project will enable new critical mineral production through the establishment of an integrated onshore Australian vanadium supply chain for the steel and battery markets.
Grant funds will also support the development of the vanadium redox flow battery market, including vanadium electrolyte and battery project development for downstream uses.
Australian Vanadium will collaborate with ATCO (TSX:ACO.X) Australia for the supply of green hydrogen for the project, while Bryah Resources Ltd (ASX:BYH) will support the recovery of nickel, copper, and cobalt from the tails stream.
Shares were as much as 43% higher to $0.05, a new high of 3.5 years with more than 303 million changing hands during the day.
Building critical Australian vanadium industry
“AVL is delighted to have been awarded this grant from the Australian Government,” Australian Vanadium managing director Vincent Algar said.
“Our project will create hundreds of jobs in Australia and help to build the critical vanadium industry both locally and internationally.
“We have developed an innovative and collaborative approach to building a fully integrated project, from mine through to processing and end use in the steel and battery markets.
“Our collaborations are allowing us to build a project with unique social and environmental benefits.
“We look forward to working with our partners to bring the Australian Vanadium Project into production and further develop downstream opportunities for green steel and the vanadium redox flow battery market.”
The Australian Vanadium Project has been given Major Project Status from the Australian Government and Lead Agency Status from the Government of Western Australia, demonstrating its importance in the continued health of the critical metal industry.
AVL will now work with the Australian Government to finalise the legal agreement for the grant, including associated terms and conditions.
About Australian Vanadium
Australian Vanadium is an emerging vanadium producer developing its high-grade Australian Vanadium Project for the steel and battery markets.
AVL’s namesake project, in Western Australia’s Murchison District, is one of the highest-grade vanadium projects being advanced globally.
It hosts a JORC-compliant 239-million-tonne resource at 0.73% vanadium pentoxide, within which lies a high-grade 95.6-million-tonne zone grading 1.07% vanadium pentoxide.
AVL also 100% owns VSUN Energy, a subsidiary focused on developing the market for vanadium redox flow batteries for energy storage.
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