Australian Vanadium Submits Kalgoorlie Battery Proposal for WA Government Approval

Australian Vanadium (ASX: AVL) and wholly owned subsidiary VSUN Energy have submitted a Stage Two proposal to the Western Australian government for the Kalgoorlie Vanadium Battery Energy Storage System (VBESS).

The consortium-led proposal would build, own, and operate a vanadium flow battery (VFB) with 500 megawatt-hours of storage capacity in the Eastern Goldfields.

The project is designed to support energy security, renewable energy integration, and network resilience while meeting a government requirement for a high proportion of WA content.

Australian Vanadium is targeting commercial operation in 2029, subject to selection, financing, approvals, procurement, construction, and commissioning.

Integrated Local Delivery Model

The Stage Two submission follows Australian Vanadium’s participation in the initial Expression of Interest (EOI) stage and substantial technical, commercial, and development work with its proposed consortium participants, advisers, and prospective funding providers.

The delivery model combines the group’s WA vanadium capability with globally recognised battery technology, engineering, construction, asset management, and energy market expertise, alongside a regional industrial supply chain and engagement with prospective financiers.

“The submission of our Stage Two proposal is an important milestone for AVL and reflects the considerable work undertaken to develop a mature, locally anchored, and deliverable long-duration energy storage solution,” chief executive officer Graham Arvidson said.

“The Kalgoorlie VBESS has the potential to deliver benefits extending well beyond the battery itself—by connecting WA vanadium resources, local electrolyte manufacturing, project construction, and long-term energy storage operations, the project has the potential to establish the foundation for a broader sovereign vanadium and long-duration energy storage industry in the state,” he added.

WA Government Evaluation

The WA government will evaluate Australian Vanadium’s proposal alongside submissions from other Stage Two participants under the EOI guidelines before any preferred proponent is selected.

Submission does not guarantee that Australian Vanadium or VSUN Energy will receive preferred status or be awarded the Kalgoorlie VBESS, with further negotiations and definitive agreements required before the project can proceed.

Established in 2016, VSUN Energy develops the Australian market for VFB systems and forms part of the group’s vertical integration strategy spanning high-purity vanadium processing, electrolyte manufacturing, and renewable energy and storage project development.

The Australian vanadium project at Gabanintha contains a mineral resource estimate of 395.4 million tonnes at 0.77% vanadium pentoxide, including a high-grade zone of 173.2Mt at 1.09% vanadium pentoxide.

Australian Vanadium’s proposal therefore seeks to pair its upstream resource and processing ambitions with a utility-scale storage asset, creating a potential local demand pathway for vanadium electrolyte while extending the group’s exposure across the Australian vanadium value chain.