Ann: AVL Secures Vanadium Electrolyte Manufacturing Technology, page-2

AVL SECURES VANADIUM ELECTROLYTE
MANUFACTURING TECHNOLOGY
AVL signs agreement with U.S. Vanadium LLC for high purity vanadium oxide supply and technology
licence.KEY POINTS
• AVL has signed an MOU with U.S. Vanadium LLC (USV) for the supply of vanadium
oxides for vanadium electrolyte production in Australia.
• MOU includes licence for low cost USV technology to convert vanadium oxides to
vanadium electrolyte for use in vanadium redox flow batteries (VRFBs).
• MOU covers exclusivity over technology licence for Australia and New Zealand.
• USV is a global leader in the production of high purity vanadium oxide products and a
key vanadium battery electrolyte supplier based in the USA.
• An initial order for USV vanadium oxides has arrived in Perth for conversion and will be
used in a commercial flow battery deployment.
• Under the agreement, high purity vanadium oxides can be sourced from either USV or
AVL and be used to produce vanadium electrolyte for Australian battery installations.
• Agreement enables AVL to commence commercial vanadium electrolyte production
ahead of planned production of its own vanadium products, leading Australian VRFB
market development.
• Technology and Supply agreement complements recently awarded Australian
Government grant of $3.69M to co-fund commercial vanadium electrolyte manufacturing
plant development in WA.

Australian Vanadium Limited (ASX: AVL, “the Company” or “AVL” is pleased to advise that it has
signed a second Memorandum of Understanding (MOU) with specialty chemical producer U.S.
Vanadium LLC (USV) for the supply of high purity vanadium oxides and a licence for vanadium



ASX: AVL | australianvanadium.com.au 2

electrolyte production. This agreement will allow AVL to commence local vanadium electrolyte
production to support growing interest in the emerging Australian VRFB market.
AVL has recently been awarded a $3.69M grant through the Australian Government’s Modern
Manufacturing Initiative (MMI)1 to develop a high purity vanadium production circuit, build and
operate a 33MWh capacity vanadium electrolyte plant, and produce locally assembled prototype
VRFB systems for domestic and stand-alone remote power systems.
This MOU complements the MOU already signed with USV regarding future offtake of vanadium
from the Australian Vanadium Project (the Project)2, for use in the US critical metals market. Both
MOUs will lead to a binding mutual vanadium supply and technology licence agreement between
the two companies.
Vanadium electrolyte, manufactured from very high-purity vanadium oxides, is the key component
in all VRFBs, which are the subject of growing attention for renewable energy storage.

Figure 1 USV V2O5 powder and vanadium electrolyte
AVL’s Managing Director, Vincent Algar, comments, ‘Having a strong relationship with a company
of USV’s calibre in the vanadium market enables AVL to secure a supply of the highest quality
vanadium oxides, prior to bringing the Australian Vanadium Project into production. This will allow
us to move quickly to build a vanadium electrolyte plant here in Australia to supply the growing VRFB
market. The plant will be partially funded by the recently announced award of the MMI grant by the
Federal Government. Our vanadium electrolyte plant will be capable of producing up to 33MWh of
capacity each year and will enable AVL to secure supply deals for Australian VRFB implementations.
Our 100% owned subsidiary VSUN Energy has already identified multiple projects suitable for locally
produced vanadium electrolyte. This vertical integration strategy puts AVL in a strong position to
secure financing for the Project and provides Australian employment opportunities in the
downstream battery supply chain.”
1 See ASX announcement dated 21st July 2021 ‘AVL Awarded $3.69M Federal Government Manufacturing Grant’ 2 See ASX announcement dated 2nd December 2020 ‘A