Highlights

• Australian Vanadium signs a Western Australian Government funding agreement capped at AUD 15 million.

• The proposed first V-NOMAD Facility is designed to manufacture vanadium electrolyte for large battery projects.

• Government support covers up to half of eligible project costs, subject to milestones and a funding cap.

• The technology connects to VSUN Energy’s proposed long-duration vanadium flow battery deployments.

Government support has been formalised for a proposed Manufacturing step in Australian Vanadium Limited’s (ASX:AVL) energy-storage strategy. The company has signed an agreement with the Western Australian Government for funding of up to AUD 15 million to support its first V-NOMAD vanadium electrolyte production facility. The grant is conditional, and the proposed project still requires the company to meet its share of the costs.

What Has the Government Agreed to Fund?

The agreement falls under the Investment Attraction Fund’s New Energies Industries Funding Stream, Round 2. It is intended to support design, construction and commissioning of a high-capacity, relocatable facility using Australian Vanadium’s independently developed V-NOMAD technology. The facility is proposed as a larger electrolyte manufacturing solution than the company’s existing capability, with potential to serve gigawatt-hour-scale vanadium flow battery projects. The announcement confirms an agreement rather than a completed plant.

How Does the AUD 15 Million Limit Work?

The state will contribute up to 50% of eligible project costs, subject to a maximum contribution of AUD 15 million. Australian Vanadium is responsible for funding the remaining balance. Payments depend on the terms of the agreement and applicable project milestones. This means the announced amount is a funding ceiling, not an unconditional transfer of AUD 15 million or a declaration that the full facility budget has been financed. Cost-sharing and delivery conditions remain part of the next project stages.

Why Build a Relocatable Electrolyte Facility?

V-NOMAD is designed as a relocatable manufacturing platform that can be positioned alongside vanadium flow battery energy-storage systems. The company intends this approach to lower electrolyte costs by linking manufacturing with deployment. The proposed production facility forms part of a broader strategy spanning vanadium resources, processing, electrolyte and storage applications. It is an intended extension of current manufacturing capability, with construction and commissioning still ahead.

Where Does VSUN Energy Fit In?

VSUN Energy, Australian Vanadium’s wholly owned subsidiary, develops opportunities involving long-duration vanadium flow batteries. Electrolyte production using V-NOMAD is intended to support projects pursued by VSUN and other utility-scale battery deployments. Separately, Australian Vanadium continues to advance its Australian Vanadium Project at Gabanintha. These activities make up the company’s stated supply-chain approach, although grant funding on its own does not confirm any future battery installation or operating revenue.

What Comes Next?

The funding agreement addresses a proposed manufacturing component of the company’s energy-storage Supply chain, while VSUN Energy is pursuing potential battery deployments. The grant terms create an explicit project-cost sharing framework. Delivery will depend on milestones, project execution and Australian Vanadium’s ability to fund the balance of eligible costs. The announcement does not state that the first V-NOMAD facility is already operating or that a specific battery installation has been contracted under this agreement.