Australian Vanadium Ltd.’s subsidiary VSUN Energy has entered into pre-bid agreement with Sumitomo Electric Industries Ltd. for the Western Australian government’s Kalgoorlie Vanadium Battery Energy Storage System (VBESS) project.
As part of the agreement, Sumitomo Electric will be VSUN Energy’s exclusive vanadium flow battery (VFB) technology provider for the project.
Sumitomo Electric will provide VSUN Energy with a range of VFB technology, engineering and support services for the expression of interest (EOI) and bid process.
Australian Vanadium said the agreement brings together the two companies’ complementary capabilities and provides a structured framework for bid-stage joint technical, commercial and delivery planning.
The agreement also supports Australian Vanadium’s strategy to develop a domestic vanadium flow battery supply chain in Western Australia.
Australian Vanadium CEO Graham Arvidson said: “Sumitomo Electric’s involvement reflects a relationship that has been built over several years of technical collaboration and building of mutual trust.
“Through that engagement, we have developed confidence in the reliability and performance of Sumitomo Electric’s vanadium flow battery technology, long-term performance guarantees, and the depth of engineering and financial strength behind them.”
The Kalgoorlie VBESS project aims to implement a locally manufactured vanadium flow battery with a capacity of 50 megawatts and a 10-hour discharge duration, backed by a AU$150 million investment by the Western Australian government.
Australian Vanadium submitted a stage one EOI for the Kalgoorlie VBESS project in January this year, with stage two set to commence in March, and negotiations with the preferred proponent expected in June.
Kazuyuki Kamada, Sumitomo Energy’s General Manager, Redox Flow Battery Division, said: “The Kalgoorlie VBESS represents an important opportunity to apply proven vanadium flow battery technology at scale, and we look forward to supporting VSUN Energy through the EOI process.”
If the VBESS project is awarded to VSUN Energy and Sumitomo Electric is approved as the preferred technology supplier, the parties plan to negotiate a formal supply agreement.