Materials

Technology Metals probing use of WA vanadium in Australian BESS batteries

Thu 14 Jul 22, 12:06pm (AEST)
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Key Points

  • Technology Metals will use its own vanadium in a pre-feasibility battery study
  • Memorandum with partner LE System commits both players to jointly exploring opportunities
  • Comes as Technology Metals’ new subsidiary, vLYTE, set to market company’s vanadium electrolyte

Vanadium producer Technology Metals Australia (ASX:TMT) will partner up with LE Systems to use its vanadium in Australian batteries within grid-scale energy storage applications. 

A study is to assess the costs of a processing plant where Technology Metals’ existing WA vanadium feedstocks will be used to extend the duration of storage batteries in Australia.

The storage batteries in question are those found in Battery Energy Storage Systems, otherwise known as BESS builds, an important part of stabilising decarbonised electricity grids. 

BESS assets act in a similar way to the potential energy of hydropowered dams, where electricity can be quickly generated (or pulled back) as the daily power market fluctuates. 

In this case, BESSies store power for instant injection or withdrawal from the grid. 

Where does Vanadium come into it? 

Technology Metals wants to use vanadium metal from its Murchison Technology Metals Project (MTMP), in the form of vanadium electrolyte, to add to battery assets in trial runs. 

Vanadium from the MTMP will be sent to LE Systems’ laboratories in Japan. Investors ought to note the MTMP itself is still awaiting full development decision. 

LE System will provide its expertise in creating vanadium electrolyte from the ore shipped from Murchison, where the company already owns a plant designed to make it. 

The partnership will continue to test applications of the product through to June 2023, though at this stage, there is little indication whether or not the MOU will see a profitable partnership in future. 

A good year for Technology Metals 

Despite sell-off season, Technology Metals has had a fairly solid year. 

Year to date (YTD) performance since the start of 2022 sees its share price up 34.5%. 

One year performance (since July 2021) reflects an increase of 25.8%. 

The company has a market cap of $81m and has outperformed the ASX200 on a one year basis by 35.3%. 

TMT's six month charts show the company outperforming the materials index (XMJ)
TMT's six month charts show the company outperforming the materials index (XMJ)

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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