Australian Vanadium Limited (AVL), a Western Australia based resource company, has signed a Letter of Intent with a subsidiary of Chinese company HBIS Chengsteel, a large steelmaker and vanadium producer, according to an ASX announcement.
AVL and Hebei Yanshan Vanadium and Titanium Industry Technology Research have signed the statement to negotiate a binding technical services and purchase agreement for AVL’s vanadium products. A visit to Western Australia by HBIS Vanadium executive management is being planned.
Yanshan Vanadium Titanium co-ordinates and commercialises research and development innovation within the steel industry. AVL intends to produce a value-added vanadium product for steel, battery and specialty chemical customers.
AVL has developed a local production capability for high-purity vanadium electrolyte, which forms a key component of vanadium redox flow batteries (VRFB).
VRFBs are a type of rechargeable flow battery that employs vanadium ions to store chemical potential energy. Vanadium batteries are used for grid energy storage. They are non-flammable and able to discharge 100 per cent of their energy without harming the system.
HBIS Chengsteel is the world’s third largest vanadium producer, according to the ASX announcement. It produces and utilises vanadium in a wide range of its products, including earthquake rated anchors and wire for skyscraper construction, vanadium aluminium alloys for aerospace applications, and electrolyte for vanadium redox flow batteries.
Its subsidiary, Yanshan Vanadium Titanium has developed a molten salt vanadium extraction process which demonstrates innovation in vanadium extraction technology with a reduction in waste produced. It says that it is keen to assist with the processing design for the Australian Vanadium Project.
The Australian Vanadium Project consists of a high-grade V-Ti-Fe deposit located in the Murchison Province in WA. AVL’s Australian Vanadium Project is one of the highest grade vanadium projects currently being developed in the world.