Australian Vanadium Nears Feasibility Study Completion, Secures $10M Loan

Upstream Progress and Regulatory Milestones

Australian Vanadium Limited (ASX, AVL) reported significant advancements in its Australian Vanadium Project during the September 2025 quarter. Phase 2 of the Optimised Feasibility Study (OFS) has made substantial progress, with key engineering deliverables such as piping and instrumentation diagrams and process flow diagrams for the concentrator and processing plant now complete. While the finalisation of the OFS has been extended due to additional validation testing, the company emphasises that this delay does not impact the overall project timeline or funding schedule.

Notably, AVL secured a major regulatory milestone with the Western Australian Planning Commission granting development approval for the Tenindewa processing facility. Environmental approvals are also advancing, with amendments under assessment by the Environmental Protection Authority. The company has extended its land purchase option for the Tenindewa site, maintaining strategic flexibility as it moves toward construction readiness.

Midstream Manufacturing and Industry Leadership

On the midstream front, AVL continues to build momentum in vanadium electrolyte manufacturing. The company has engaged with global vanadium flow battery (VFB) original equipment manufacturers (OEMs) to validate electrolyte quality and refine unit costs. Preparations are underway for long-duration battery testing, which will further establish AVL’s product credibility in the growing energy storage market.

AVL has completed preliminary designs for scaling up electrolyte manufacturing to utility-scale levels, with refined capital and operating cost estimates positioning the company to respond swiftly to anticipated demand. The company’s leadership in the sector is underscored by the nomination of COO Todd Richardson and Product Development Manager Dr Yifeng Li to the Australian National Committee developing VFB standards, linking AVL directly to international regulatory frameworks.

Downstream Energy Storage Initiatives

AVL’s wholly owned subsidiary, VSUN Energy, is advancing Project Lumina, a turnkey utility-scale VFB energy storage system tailored for Australia’s energy markets. Recent design iterations have focused on improving cost efficiency, scalability, and local content, bringing the project to a stage where financial investment decisions (FID) can be made on potential deployments.

VSUN Energy is actively pursuing multiple utility-scale VFB opportunities across five Australian states, including preparatory work for the Western Australian Government’s proposed 50 MW / 10-hour vanadium battery energy storage system (VBESS) in Kalgoorlie. This landmark project, backed by a $150 million government commitment, aims to enhance energy security and create local jobs, with AVL well positioned to play a leading role.

Corporate Developments and Funding

Financially, AVL secured a US$10 million secured loan facility with Resource Capital Funds, providing medium-term funding flexibility to advance key workstreams and participate in the Kalgoorlie VBESS opportunity. The loan proceeds were received after the quarter ended. Additionally, AVL received a $4.9 million milestone payment from the Federal Government’s Modern Manufacturing Initiative grant, bringing total grant receipts to $29.4 million.

The company also proposed a 25-to-1 share consolidation, subject to shareholder approval, aimed at improving share liquidity and aligning AVL’s capital structure with industry peers. At quarter-end, AVL held $4.6 million in cash, excluding the recent loan and grant receipts, and continues to manage expenditures prudently.

International Engagement and Market Positioning

AVL’s international engagement included participation in high-level trade delegations to Japan and South Korea, where the company showcased its integrated vanadium supply chain and energy storage solutions. These efforts aim to strengthen partnerships and investment opportunities in key Asian markets, reinforcing AVL’s role in the global critical minerals and clean energy sectors.

Overall, Australian Vanadium Limited is steadily advancing its vertically integrated strategy from mining through to energy storage deployment, positioning itself as a key player in Australia’s clean energy transition and the emerging global vanadium market.