Western Australia grants $15 million for vanadium battery electrolyte plant

The Cook Labor government has allocated $15 million from its Investment Attraction Fund to Australian Vanadium Limited. The funding supports the construction of a high-capacity, relocatable manufacturing facility dedicated to producing vanadium flow battery electrolyte in Western Australia.

Vanadium flow batteries are a type of long-duration energy storage technology, distinct from lithium-ion batteries.

Funding Structure and Company Role

The Western Australian government’s contribution covers up to 50 per cent of eligible project costs, with total state funding capped at $15 million. Australian Vanadium Limited (AVL) is responsible for funding the balance of the project costs.

Graham Arvidson, CEO of Australian Vanadium Limited, stated, "The awarding of this grant is an important milestone for AVL..." The company has not provided a specific timeline for the construction or commissioning of the V-Nomad facility. Without a disclosed schedule, the immediate focus remains on securing the remaining private capital and initiating the build process under the agreed cost-sharing arrangement.

Technology and Project Scope

• The facility will manufacture electrolyte for the V-Nomad vanadium flow battery (VFB) system.
• VFBs store energy using liquid vanadium electrolyte solutions held in separate tanks, a mechanism that distinguishes them from solid-state lithium-ion designs.
• Compared to other storage technologies, V-Nomad systems are non-flammable and offer longer storage duration and lifespan.
• Australian Vanadium Limited and VSUN Energy are currently studying a battery capacity ranging from 50 to 80 MW.
• The proposed storage duration for this capacity is 6 to 8 hours, with the potential for longer durations.

The 50 to 80 MW capacity under study represents a significant scale for long-duration storage, specifically targeting grid applications where extended discharge times are required to balance renewable energy generation.

Strategic Goals and Regional Context

David Michael, Minister for State Development and Economic Diversification, stated, "The Investment Attraction Fund continues to play a critical role..." in supporting these initiatives. The state government’s broader objectives include building a local supply chain, creating skilled employment, and providing training opportunities. These goals are part of a wider strategy to support grid-scale storage and strengthen critical minerals supply chains across the region.

This electrolyte plant fits into a larger pattern of state investment in battery infrastructure. The government recently closed a tender for a 50 MW and 500 MWh battery project in Kalgoorlie in July. That separate project is set to receive up to $150 million in government funding. While distinct from the AV L electrolyte facility, the Kalgoorlie tender highlights the scale of state resources being directed toward establishing long-duration storage capabilities in the state.

Alcoa Partnership and Kalgoorlie Grid Deployment

In August, AVL and its subsidiary VSUN Energy announced a memorandum of understanding with Alcoa to assess the financial and technical merits of deploying VFB technology at the aluminium major’s Western Australian alumina refineries. Arvidson described the MoU as an opportunity to evaluate how long-duration storage supports operational flexibility and decarbonisation objectives at a globally recognised industrial operator.