Australian Vanadium Ltd progresses ‘pit-to-battery’ strategy, catches government and approval tailwinds
Susanna Nelson This record is published on behalf of Australian Vanadium Ltd, a paid client of Pro active
Published: 21:56 29 Apr 2025 EDT
Australian Vanadium Ltd made good progress on its vertically integrated vanadium supply chain during the March 2025 quarter, as the company continued to move its flagship Australian Vanadium Project (AVP) from mine development through to battery storage applications.
Phase 2 of the company’s optimised feasibility study (OFS) for the Australian Vanadium Project continued at pace, with detailed mine scheduling and design work completed.
Engineering and cost estimation, led by key consultants including GR Engineering Services, Wood Group, WSP and PSM, are on track for finalisation in the September quarter of calendar year 2025.
Environmental approval
One big achievement for the quarter was the receipt of environmental approval from the West Australian Minister for Environment for the **anintha Vanadium Project. This will support integration of the **anintha mine and concentrator with AVL’s processing plant at Tenindewa, near Geraldton.
Work also progressed on secondary approvals for the Tenindewa site, with 12-month baseline studies for noise, air quality and water monitoring underway.
Yamatji Water, a local Indigenous-owned company, was contracted to conduct sub-surface aquifer monitoring, in keeping with AVL’s commitment to regional participation.
The project also benefited from enhanced status under the West Australian Government’s Lead Agency Framework, which designated it a Green Energy Major Project and promised high-level departmental support.
Federal policy tailwinds
Meanwhile, federal support for the vanadium sector continues to build.
AVL is a recipient of a A$49 million Modern Manufacturing Initiative grant, with A$24.5 million received to date.
Additionally, the Critical Minerals Production Tax Incentive (CMPTI), which passed into law in February 2025, provides a 10% refundable tax offset on eligible processing costs. – this is expected to enhance AVP’s financial returns and bankability.
Adding to these tailwinds, the re-elected WA Labor Government has confirmed a reduced 2.5% royalty rate for vanadium products and maintained a zero royalty rate for vanadium electrolyte, which strengthens the company’s midstream position.
Vanadium electrolyte manufacturing and scale-up
During the quarter, AVL advanced product qualification with global vanadium flow battery (VFB) OEMs, supplying pilot-scale electrolyte samples for comprehensive testing.
The company encountered no technical hurdles and is now focused on analytical standard alignment to secure certifications.
To support scale-up, AVL awarded Primero Group a services contract to develop gigawatt-hour scale production capability.
Post-quarter, the company hosted Treasurer Jim Chalmers, Finance Minister Katy Gallagher, and other federal representatives at its Perth electrolyte facility – constructed with the support of a A$3.69 million manufacturing grant. https://cdn.*.com/CKEditor/2025/120/avl.JPG
Energy storage and Project Lumina
During the March quarter, VSUN Energy, AVL’s downstream subsidiary, progressed Project Lumina – a utility-scale, modular VFB battery energy storage system (BESS).
The company has made design refinements with partners GenusPlus, Sedgman, and Enerox (CellCube) that it says continue to affirm the competitiveness of its 100MW/800MWh solution against lithium-ion systems on a levelised cost of storage (LCOS) basis.
Following strong market engagement, VSUN submitted expressions of interest post-quarter to deliver over 1.2GWh of storage.
WA Labor’s A$150 million commitment to a 500MWh vanadium battery in Kalgoorlie further validates AVL’s position.
VSUN also completed installation and commissioning of a VFB in Kununurra for Horizon Power, with the battery operating since November 2024.
Early performance data confirms its resilience in high-temperature, high-humidity environments, which is crucial for Australia’s northern energy networks.
Financial position and cost management
AVL ended the March quarter with A$17.1 million in cash, including A$9.3 million earmarked for eligible grant activities.
The company received a further A$1.59 million R&D tax refund post-quarter, strengthening its funding runway.
Net operating cash outflows totalled A$2.06 million and AVL implemented cost-saving measures during the period, including staff reductions.
Investment outflows were A$3.94 million, primarily directed to the OFS and Project Lumina.
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