One of the world's largest ASX-listed vanadium projects has found a potential battery customer

One of the world’s largest vanadium projects has found itself a potential customer – India’s Delectrik Systems, a fast growing Vanadium Redox Flow Battery (VRFB) manufacturer that sells its battery systems to customers across the US, Australia, Europe and the Middle East.

Technology Metals Australia (ASX: TMT) has signed a Memorandum of Understanding with Delectrik Systems for the supply of vanadium products from its Murchison Technology Metals Project in WA.

The MoU is effective for five years and specific volumes are “to be agreed in the next phase of the agreement.”

“This MOU supports TMT’s development plan for the MTMP and the secure supply of high purity vanadium for long duration VRFBs globally,” said Managing Director Ian Prentice.

“The MOU contemplates supporting Delectrik’s VRFB roll out within Australia, demonstrating the significant potential in Australia for VRFB use in a range of applications, from replacing diesel generation at remote mine sites to storing solar energy for EV charging stations,” he added. 

The Murchison Technology Metals Project 

In November 2022, the company upgraded the Mineral Resource for the Murchison Technology Metals Project (MTMP) by 5% to 153.7 million tonnes of vanadium oxide at grades of 0.8% with a mine life of more than 25 years.

2023 will represent a key turning point for the project as it finalises pre-Final Investment Decision milestones like environmental permits, ESG and downstream studies. 

The Vanadium Market

Vanadium redox flow batteries are known for their long lifespan, scalability, safety and environmental friendliness. Ongoing research and development is focused on improving the performance of these batteries (as they are relatively low energy density compared to lithium-ion batteries) and reducing their costs.

The vanadium market was relatively balanced at around 220,000 tonnes in 2022, according CRU. By 2031, consumption is expected to grow to circa 380,000 tonnes, with a shortfall of approximately 45,000 tonnes.

The MTMP Project is expected to play a key role in the vanadium market, producing approximately 12,500 tonnes per annum. 

Source: Technology Metals Australia (March 2023)