Australian Vanadium Limited (AVL) and the Department of Industry, Science and Resources have executed a Commonwealth grant agreement.
The grant was executed as part of the Modern Manufacturing Initiative, which falls under the manufacturing collaboration stream.
The grant provides up to $49 million in funding support for the Australian Vanadium project by collaborating with industry partners to create an Australian vanadium battery industry.
The Australian Vanadium project is one of the most advanced critical mineral vanadium projects being developed globally that has the potential to produce 11.2 kilotons per annum of vanadium pentoxide over a 25+ year mine life.
The grant will fund eligible activities to construct and commission a concentrator and a high-purity vanadium processing facility capable of using green hydrogen as part of the extraction process for the project.
The grant’s scope encompasses support for all stages of the vanadium production value chain, from mining and concentrating to vanadium processing for use in electrolyte production.
Under the grant, AVL will also collaborate with Bryah Resources Limited to explore options to extract cobalt, nickel, copper and gold economically from the project.
The grant will be paid progressively over the term of the agreement, subject to milestones and compliance by AVL with its obligations under the agreement.
An initial payment of $9.8 million is scheduled to be received by AVL in June 2023, followed by three further payments. The final payment is scheduled for August 2025.
AVL chief executive officer Graham Arvidson said the company has been working closely with the Australian Government and is pleased to announce the agreement.
“The grant will be of great benefit to AVL as we seek to optimise and finalise our financing and off-take arrangements and continue to move the project forward for the benefit of the mid-west region of Western Australia, and Australia more broadly,” Arvidson said.
The agreement commenced May 29 and will end July 31 2026.