Technology Metals Australia Ltd (ASX:TMT) has a prospective buyer for its vanadium – its wholly-owned subsidiary, vLYTE Pty Ltd, has inked a non-binding Memorandum of Understanding (MoU) with Delectrik Systems Pvt. Ltd, a fast-growing Indian vanadium redox flow battery (VRFB) manufacturer.
The MoU covers the supply of vanadium raw material from TMT’s Murchison Technology Metals Project (MTMP) to Delectrik in India.
This agreement also contemplates supply of vLYTE electrolyte to Delectrik for use in VRFBs within Australia.
Specific volumes to be supplied in each jurisdiction are to be agreed in the next phase of the agreement.
Downstream strategy
The timing is great, coinciding with the launch of an Indian Government investment of US$4.3 billion in the country’s energy transition.
This supports the development of the VRFB industry in Australia and represents another key component of Technology Metals’ downstream strategy.
TMT is progressing the development of the MTMP in WA to produce high-purity vanadium pentoxide (V2O5) and through vLYTE is investigating downstream production of vanadium electrolyte in Australia.
The company’s objective, supported by this MoU, is for the MTMP to be a stable, secure, primary producer of this critical mineral, to support the deployment of vanadium redox flow batteries (VRFBs) for long-duration energy storage across the globe.
Delectrik is a fast-growing VRFB manufacturer based in Gurgaon, India, that produces its own vanadium electrolyte, as well as designing and manufacturing VRFB systems ranging from kW to MW scale.
It is commercially selling its VRFB systems in several regions in addition to India, including the USA, Australia, Western Europe and the Middle East.
Delectrik recently announced it has entered into a distribution and manufacturing licence with a Saudi Arabian energy systems company and will develop a MWh scale VRFB in Europe to support electric vehicle charging stations, which will be deployed in 2023.
The rollout and scale-up of Delectrik’s VRFB system deployment will require substantial volumes of vanadium electrolyte.
The MoU encompasses both the supply of vanadium products directly from the MTMP to Delectrik, and the supply of vanadium electrolyte by vLYTE to Delectrik within Australia using vanadium from the MTMP. Specific volumes to be supplied are to be agreed in the next phase of the agreement.
Managing director Ian Prentice said: “This MoU supports TMT’s development plan for the MTMP and the secure supply of high-purity vanadium for long-duration VRFBs globally.
Rapidly emerging renewable powerhouse
“India is a rapidly emerging renewable energy powerhouse, with the Indian Government recently announcing a US$4.3 billion investment towards the country’s energy transition to help reach its goal of net-zero.
“This MoU with fast-growing Indian battery manufacturer Delectrik reinforces TMT’s path to becoming a preferred supplier of vanadium for these batteries.
“The MoU contemplates supporting Delectrik’s VRFB roll out within Australia, demonstrating the significant potential in Australia for VRFB use in a range of applications, from replacing diesel generation at remote mine sites to storing solar energy for EV charging stations.”
Delectrik CEO Vishal Mittal said: “Delectrik believes VRFBs will have a vital role in supporting the world’s transition to net-zero and we are thrilled to be part of this journey with our recent deployments of batteries in India, USA, Europe, Middle East and Australia.
“Australia is a key region for Delectrik both as a market for its flow batteries and availability of vanadium resource and as such, the company has recently established a wholly-owned subsidiary, Delectrik Systems Australia Pty Ltd.
“The partnership with TMT is very exciting as it provides Delectrik a secure supply of high-quality vanadium as we expand our business globally.”
