AVL Advances Feasibility Study, Secures $18M Cash, Targets 50MW Kalgoorlie VBESS

Upstream Progress, Australian Vanadium Project

Australian Vanadium Limited (ASX, AVL) is rapidly advancing its flagship Australian Vanadium Project, with the second phase of its Optimised Feasibility Study (OFS) approaching completion. The study encompasses detailed engineering, cost estimation, and metallurgical test work, all of which underpin a robust development plan. An updated Mineral Resource Estimate is expected in the first quarter of 2026, reinforcing the project's substantial vanadium reserves at Gabanintha and processing plans at Tenindewa.

Alongside technical progress, AVL has secured important environmental approvals under Western Australia's Environmental Protection Act, including amendments facilitating project integration. The submission of a revised Environmental Review Document marks a critical step toward final EPA approvals, smoothing the path for project development.

Midstream Expansion, Electrolyte Manufacturing

AVL is also focusing on scaling its vanadium electrolyte manufacturing facility in Perth. This expansion is designed to meet anticipated demand from utility-scale vanadium flow battery (VFB) projects, notably the Western Australian Government’s proposed 50 MW Kalgoorlie Vanadium Battery Energy Storage System (VBESS). The company has refined design and economic estimates, positioning itself to supply larger volumes of electrolyte competitively.

AVL’s engagement with global battery manufacturers continues, with ongoing performance testing and electrolyte qualification reinforcing its technical credibility. The company has also hosted international delegations and senior government officials, highlighting its role in the emerging vanadium battery ecosystem and contributing to international standards development for VFB technology.

Downstream Developments, Project Lumina and Kalgoorlie VBESS

Through its subsidiary VSUN Energy, AVL is advancing Project Lumina, a turnkey, scalable utility-scale energy storage system utilising vanadium flow battery technology tailored for Australia’s energy market and climate. This project exemplifies AVL’s vertically integrated strategy, linking upstream vanadium production with downstream energy storage solutions.

The Western Australian Government’s recent opening of the Expression of Interest (EOI) process for the Kalgoorlie VBESS project presents a significant commercial opportunity. Backed by a $150 million funding commitment, the project aims to enhance regional energy security and develop a local vanadium supply chain. AVL intends to respond to the EOI, leveraging its integrated ‘pit-to-battery’ capabilities and established electrolyte production.

Corporate Strength and Funding

AVL’s financial position remains strong, with cash reserves of $18.1 million at the end of December 2025. This includes $4.9 million in government grant funds earmarked for eligible activities. The company recently completed a 25, 1 share consolidation to streamline its capital structure and enhance investor appeal.

Further bolstering its balance sheet, AVL secured a US$10 million loan facility with major shareholder RCF Private Equity Fund, providing medium-term funding flexibility to advance key workstreams. Additionally, the company received $2.55 million under the Australian Government’s R&D Tax Incentive, supporting ongoing research and development efforts.

Internationally, AVL has continued to build strategic relationships in South Korea and Japan, engaging with potential offtake and technology partners. Its participation in global forums and standards committees underscores its ambition to be a leader in the vanadium flow battery sector.