Australian Vanadium secures $4.9m federal grant payment

Australian Vanadium Limited (AVL) has received a $4.9 million milestone payment from the Federal Government under a Commonwealth Grant Agreement. This payment is part of a larger grant providing up to $49 million to support the Australian Vanadium Project, aimed at enabling new critical mineral production and strengthening the domestic vanadium supply chain for the battery energy storage market. AVL has now received a total of $29.4 million in milestone payments from this grant.

The funds are allocated for eligible activities related to the construction and commissioning of a crushing, milling, and beneficiation plant, as well as a high-purity vanadium processing facility for the Australian Vanadium Project. This process is crucial for producing vanadium electrolyte at AVL's Perth manufacturing facility, which is key to the company's vanadium flow battery deployment strategy.

Further progress payments, totaling the remaining $19.6 million of the grant, are anticipated over FY27 and FY28. These payments are contingent on AVL achieving agreed project milestones and complying with the grant's requirements.