The Western Australian government is moving closer to delivering Australia’s largest Vanadium Battery Energy Storage System (VBESS), with strong industry interest in the first stage of the project’s EOI process confirming Western Australia’s appeal as a hub for advanced battery manufacturing.
More than 20 responses were received to the Stage One Expression of Interest, demonstrating a high level of confidence from companies across the resources and energy sectors in developing a full Western Australian vanadium supply chain.
The next step will involve calling for detailed business cases in Stage Two, with a preferred proponent expected to be selected by mid-2026.
The government has committed $150 million towards installation of the 50‑megawatt, 500‑megawatt‑hour vanadium flow battery in Kalgoorlie.
When completed, the VBESS will become Australia’s largest such facility and a key component of the state’s strategy to diversify its economy, create regional jobs, and strengthen the Goldfields’ electricity network.
The project forms a central part of the Cook government’s Made in WA plan, which aims to expand downstream processing and local manufacturing capabilities across Western Australia’s critical minerals sector.
By supporting domestic processing of vanadium and production of long-duration battery storage technologies, the initiative is expected to position the state as a leader in renewable energy infrastructure and energy storage innovation.
The Department of Energy and Economic Diversification is currently assessing the Stage One responses and will soon outline the criteria for the second stage of the procurement process.
The selected proponent will be responsible for designing, developing, and commissioning the large-scale vanadium battery, which will store renewable energy and improve regional power reliability.
In support of the emerging sector, the WA government recently applied a 2.5 per cent royalty rate on vanadium products to encourage new investment in local mining and processing operations.
The lower rate is designed to strengthen the business case for developers and foster a sustainable vanadium battery industry within the state.
Energy and Decarbonisation Minister Amber‑Jade Sanderson said the VBESS project represented a major commitment to manufacturing more energy technologies within Western Australia and enabling the state to become a renewable energy powerhouse.
She said partnering with industry would ensure the project delivered local content, skilled employment, and long-term value for Western Australians.
Mines and Petroleum Minister David Michael said the high level of interest from the resources and manufacturing industries reflected growing confidence following the government’s clarification of the royalty framework for vanadium producers earlier this month.
He said providing policy certainty was critical to unlocking investment and ensuring that projects like the VBESS progress from planning to delivery.
Kalgoorlie MLA Ali Kent said the project signalled an important step toward building a new industry base in Kalgoorlie‑Boulder while improving energy reliability for regional communities.
She said a locally manufactured vanadium battery and supply chain would generate skilled jobs and help diversify the regional economy for decades to come.
