Australian Vanadium (ASX:AVL) disclosed progress in the development of Project Lumina through its wholly owned subsidiary, VSUN Energy.
The project, which is focused on delivering a scalable, turnkey, utility-scale battery energy storage system using vanadium flow battery technology, has achieved a milestone with an improved estimated levelised cost of storage of $214/MWh (±30%) for an 8-hour system—down from a previous estimate of $251/MWh.
This updated LCOS positions Project Lumina's VFB BESS as competitive with lithium-ion alternatives in the current market.
The company attributes the progress to early contractor involvement with GenusPlus Group (ASX:GNP), engineering firm Sedgman, and Austrian VFB manufacturer CellCube.
The collaboration has refined system design and cost structures, enhancing benefits such as faster deployment, reduced capital costs, increased use of local content, and modular expandability.
The current design features a flexible architecture of 15 MW modular arrays and storage duration ranging from 4 to 12+ hours, with the potential for brownfield expansion via additional tanks and electrolyte.
AVL CEO Graham Arvidson stated that the company's vertically integrated strategy is aligned with Australia's growing demand for long-duration storage solutions.
VSUN Energy is actively pursuing utility-scale opportunities across five states, in line with national policies supporting vanadium mining, battery storage adoption, and domestic critical minerals processing.
With detailed design work scheduled for completion by Q3, AVL is also advancing funding strategies—including debt and strategic equity options—and exploring potential Build-Own-Operate models.
At the time of reporting, Australian Vanadium's share price was $0.012.
AVL Price at posting:
1.2¢ Sentiment: None Disclosure: Held
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