Australian Vanadium Advances Feasibility and Electrolyte Technology with Kalgoorlie Battery Bid

Feasibility Study Nears Completion with Metallurgical Advances

Australian Vanadium Limited (ASX:AVL) has continued to push forward its Optimised Feasibility Study (OFS) for the Australian Vanadium Project, completing critical metallurgical testwork including pelletising, roasting, and flotation validation. These efforts refine the project’s preferred configuration and operating strategy, underpinning AVL’s path toward finalising the OFS. The study also incorporates updated cost estimates and schedule integration, positioning the project for early works and financing readiness.

Environmental and regulatory approvals remain a focus, with AVL engaging constructively with government agencies, Traditional Owners, and regulators to advance the necessary permits for the Gabanintha mine and Tenindewa processing hub. While timing remains subject to statutory processes, the company is methodically progressing its approval workstreams.

Electrolyte Manufacturing Technology Gains Traction

Midstream, AVL’s V-NOMAD™ electrolyte production platform continues to develop, aiming to lower the delivered cost of vanadium electrolyte for utility-scale vanadium flow batteries (VFBs). The company reported positive qualification outcomes with leading South Korean and Japanese VFB manufacturers, broadening its potential customer base.

AVL is advancing design and cost optimisation of the V-NOMAD™ platform with contractor Sedgman Pty Ltd, aligning the technology with Australian government objectives to boost critical minerals processing and energy storage deployment. The flexible manufacturing solution is being positioned for both AVL projects and third-party applications.

Kalgoorlie VBESS Project Proposal Submitted

Downstream, AVL’s wholly owned subsidiary VSUN Energy submitted its Stage Two Expression of Interest (EOI) proposal for the Western Australian Government’s 50MW / 10-hour Kalgoorlie Vanadium Battery Energy Storage System (VBESS) project. This initiative is a cornerstone of regional energy security and economic diversification in the Goldfields, with AVL leveraging its integrated vanadium supply chain to underpin the project.

The company is also advancing its Lumina™ utility-scale VFB architecture tailored for Australia’s energy markets and hot climate conditions, targeting sectors such as mining, data centres, and grid-connected storage. AVL is developing a commercial electrolyte leasing framework designed to reduce upfront capital costs and stimulate domestic VFB deployment.

Strengthened International and Domestic Engagement

AVL deepened its international ties during the quarter, hosting Japan’s Ministry of Economy, Trade and Industry and Sumitomo Electric representatives at its Perth electrolyte facility, and engaging with US stakeholders at the Project Blue Critical Materials Conference in Washington DC. The company also welcomed representatives from the Ontario Teachers’ Pension Plan amid growing Australia-Canada cooperation on critical minerals.

Domestically, CEO Graham Arvidson contributed to industry forums and regional community engagement in Kalgoorlie, focusing on workforce participation, Aboriginal engagement, and the potential benefits of vanadium flow batteries for regional energy resilience.

Financial Position and Outlook

AVL ended the quarter with AUD 17.9 million in cash, including AUD 2.6 million earmarked under the Federal government’s Modern Manufacturing Initiative Collaboration Grant. Operating cash outflows were AUD 2.2 million, with investing activities primarily supporting the OFS advancing at AUD 1.4 million. The company maintains a disciplined expenditure approach aligned with its strategic priorities.