KEY POINTS
• AVL signs Memorandum of Understanding with vanadium redox flow battery manufacturer V-Flow Tech Pte Ltd.
• Memorandum of Understanding includes development of:
Vanadium pentoxide offtake arrangements to support global battery sales by VFlow Tech;
Vanadium electrolyte manufacture and supply for VRFB installations in Australia.
Battery sales in Australia through subsidiary VSUN Energy;
Battery installation, service and maintenance in Australia.
• First sale of a 5kW/30kWh V-Flow VRFB made for a remote, off-grid WA residential customer by AVL’s subsidiary, VSUN Energy Pty Ltd.
Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL”) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with Singapore based vanadium redox flow battery (VRFB) manufacturer, V-Flow Tech Pte Ltd (V-Flow).
The MOU provides a basis for opportunities relating to VRFBs, including:
• Vanadium products (V2O5) offtake to V-Flow in Singapore to support global battery sales.
• Vanadium electrolyte manufacture and supply in Australia for V-Flow VRFBs.
• Sales agreement with AVL’s 100% owned subsidiary VSUN Energy for VRFB sales in Australia.
• VRFB service and maintenance.
Managing Director, Vincent Algar comments, “As AVL confirms its offtake partner strategy for the Australian Vanadium Project, both battery and steel customers from diverse geographical regions will underpin our vanadium product sales. VRFB manufacturers around the world have their own particular product strengths and capabilities, offering variants of sizes and capacity. V-Flow’s small VRFB is now available from VSUN Energy to small commercial and residential customers,
supporting a rapidly growing market sector in Australia. VSUN Energy is actively working on deployment of V-Flow VRFB’s into projects in the Australian market, as well as the south-east Asian market.”
Dr Avishek Kumar, CEO of V-Flow comments, “Australia has great potential for small to mid-size batteries for household and remote microgrid application. V-Flow batteries are a safe and higher performing product, designed to meet this market segment. We are privileged to partner with VSUN Energy to jointly develop this market in Australia. VSUN Energy has a strong base in Australia and
already has many potential opportunities for our batteries. In addition, our partnership with AVL will be able to boost the supply chain strategy for vanadium electrolyte. We are looking forward to powering many more Australian homes with locally produced electrolyte from AVL and contributing towards circular economy.”
The key terms of the MOU are:
• The MOU is non-binding.
• Memorandum of Understanding includes potential formal agreements in relation to:
Sales, service and maintenance of V-Flow’s VRFBs in Australia;
Vanadium pentoxide offtake arrangements to support global VRFB sales by V-Flow;
Vanadium electrolyte manufacture and supply in Australia.
• One or more formal and binding agreements concerning the above to be negotiated.
• Each party must pay its own costs in relation to the MOU and any agreements contemplated by the MOU.
• The MOU is for a term of 2 years with an option to renew for a further 12 months by agreement in writing, with a 30-day notice period on either side for termination. VRFBs are characterised by their longevity and durability. They offer non-flammable energy storage with virtually unlimited cycles. V-Flow’s VRFBs can operate in a temperature range of -10°C to customers, telecommunications and grid-attached small commercial settings. The V-Flow product can be deployed immediately to this smaller range size of customer as the company has a Clean Energy Council compliant inverter system.
Growing the market for VRFBs is an enabler for AVL’s vertical integration strategy to add value to its mined vanadium in Australia. Potential job creation will come through electrolyte manufacturing, battery sales, installations and maintenance.
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