Vanadium and the Future, page-4

Is Lithium a danger to flow batteries?... NO

The clear current choice is Lithium for mobile applications and flow batteries for fixed applications.

So what are the dangers for Vanadium. After all that's what we're interested in.

Scientists are researching a number of alternatives to Vanadium which unlike Lithium makes up a high percentage of battery cost. Those that are into investing rather than ST would do well to watch the competition carefully. There are a number of alternatives in test at the moment but none are yet close to proving to be commercially viable that I can find. However, they are a danger in the 5 plus years I think and especially as they are designed to retrofit existing systems. These same dangers exist for Lithium so I don't see it as a reason not to invest but I do see it as a reason to keep eyes on the ball. I also see it as another example of why AVL's buisiness model makes the most sense. As long as they grow the company around flow batteries in an all round way, sales, mining, perhaps manufacturing they have a future that has a good chance of success.

What I hope for is that Vanadium can get us to mining stage. Here we hope management are pro active and imo we hope that VRB's are not so successful they encourage others to find new resources. What I'm looking for is sufficient success to get us mining but not create a similar scenario to what we see with Lithium where everyone is chasing it. That way if replacements come on line over time there is likely to still be great support for Vanadium in other areas such as in combination with Lithium.

Nothing is certain when you enter a disruptive period. Keep your eyes on the ball because the gains could be huge but the sands will shift in time.