Australian Vanadium (AVL) AGM 2024 Presentation summary

Strategic positioning and market opportunity

• Energy transition requires both generation and matched storage; vanadium flow batteries (VFBs) offer a proven, economic solution for utility-scale storage, providing significant value creation opportunities.

• Victoria's record peak demand highlights the need for long-duration storage to reduce reliance on brown coal and meet emission targets.

• Australian Energy Market Operator forecasts medium to long-duration storage capacity to reach 120 GWh by 2040, with an average duration of 11 hours, underscoring strong market growth.

• China leads VFB adoption at GWh scale, positioning Australia as a potential fast follower due to its renewable energy capacity.

• High vanadium content in VFBs makes access to quality vanadium oxides critical for supply chain scalability.

Project Lumina and technology deployment

• Project Lumina targets a modular, turnkey, utility-scale VFB energy storage system (100MW/400-800MWh), aiming for competitive levelised cost of storage (LCOS) of A$274/MWh for 4-hour duration.

• Phase 2 aims for a final investment decision by Q3 CY2025, leveraging established VFB technology and local optimisation to de-risk deployment.

• Project Lumina will use AVL's own electrolyte manufacturing, proven global VFB technology, and local EPC partners to minimise technical risk and enable scalable, capital-efficient augmentation.

• VFBs offer multiple daily discharge cycles, 30+ year operating life, non-flammability, and over 99% recyclability, with LCOS competitive to lithium-ion for utility-scale storage.

• VSUN Energy is advancing partnerships for technology, deployment, funding, and energy offtake, with a focus on rapid deployment and leveraging brownfield sites.

Vertically integrated value chain and project progress

• Vertically integrated strategy spans vanadium mining, electrolyte manufacturing, and downstream utility-scale BESS solutions, enabling cost-competitive VFB storage.

• The Australian Vanadium Project in Western Australia is a world-class, open-pit asset with proven processing technology; feasibility study and approvals are progressing.

• AVL operates a Perth-based electrolyte facility with 33MWh annual capacity, first production in 2024, and qualification with industry leaders underway.

• Downstream, VSUN Energy has deployed VFBs with mining and utility customers, including IGO Limited and Horizon Power, supporting decarbonisation and grid stability.

• Project milestones include BFS completion, government grant secured, electrolyte production online, and next steps focused on permitting, offtake, and final investment decision.