Horizon Minerals Ltd (ASX:HRZ) investee Richmond Vanadium Technology (RVT) has signed a binding term sheet agreement to invest up to $5 million in Ultra Power Systems (UPS) – an Australian-based vanadium redox flow battery (VRFB) manufacturer – and obtain the rights to supply all vanadium offtake to UPS, subject to cost, quality and timing.
Horizon Minerals holds a 25% interest in Richmond Vanadium Technology, which owns a 1.8-billion-tonne vanadium resource in the form of the Richmond Vanadium Project in Queensland.
RVT will subscribe for 20 million UPS shares at $0.25 per share, subject to the successful listing and IPO of Richmond Vanadium and completion of due diligence on UPS systems.
UPS has developed its own VRFB system, the Ultra V40 battery module, and a standalone power station which integrates solar and wind turbines into a mobile, scalable power generation system designed for off-grid applications.
Building a mine to metal to battery corridor
“As Richmond Vanadium continues to advance its world class Richmond Vanadium Project in north Queensland, having a partner like Ultra who is already successfully developing VRFBs contributes to our aim of establishing a significant mine to metal to battery corridor right here in Australia,” Richmond Vanadium Technology managing director Shaun Ren said.
While the steel industry has traditionally been the largest consumer of vanadium, Vanitec – a not-for-profit international global member organisation focused on vanadium use – has stated the material is increasingly being used in VRFBs.
Analysis by independent market intelligence and advisory firm Guidehouse Insights has revealed the global annual deployment of VRFBs is expected to reach 32.8 giga-watthours per year by 2031, a compounding annual growth rate (CAGR) of 41% over the period.
This forecast would equate to between 127,500 and 173,800 tons of new vanadium demand per year by 2031, more than twice the vanadium currently produced annually.
“We are taking the next step in creating a strategic partnership, the additional funding will facilitate the acceleration of Ultra’s development and planned modular electrolyte production,” Ultra Power Systems chair and CEO Brad Appleyard said.
“We look forward to working together as this new industry grows exponentially.”
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