ASX-listed Australian Vanadium (AVL) said on Thursday it had signed a variation to its A$49-million Modern Manufacturing Initiative grant agreement with the Australian government, aligning the funding with the company’s integrated development plan following its merger with Technology Metals Australia.

The grant will continue to support the construction and commissioning of the concentrator and high-purity vanadium processing facility for the Australian vanadium project in Western Australia, which is being designed to use green hydrogen.

Under the revised agreement, the completion date for funded activities has been extended to March 31, 2028, with the overall grant programme running until July 2029. The total value of the grant remains unchanged.

To date, AVL has received A$24.5-million in progress payments. The company expects a further A$4.9-million in the current financial year and up to A$17.6-million across the 2027 and 2028 financial years, subject to milestones being met.

AVL CEO Graham Arvidson said the revision strengthened government backing for the project.

“This grant variation represents another strong endorsement of the Australian vanadium project and AVL’s commitment to building a fully integrated, value-adding vanadium supply chain in Australia. We are very grateful for the Department of Industry, Science and Resources' (DISR’s) strong engagement and understanding of our integrated project requirements following our recent merger.

“Our ‘pit to battery’ strategy is advancing – producing vanadium concentrate from our proposed mine near Meekatharra, processing it into high-purity vanadium at our planned facility near Geraldton and converting it into vanadium electrolyte at our operating plant in Perth.

“The grant plays a pivotal role in enabling these stages and strengthening sovereign capability. Our activities directly support the federal government’s Future Made in Australia and National Battery Strategy and align with the Western Australian government’s commitment to deploying 500 MWh of vanadium flow battery capacity using locally manufactured electrolyte.

“We thank the DISR and all levels of government for their continued support of AVL and the broader vanadium and energy storage sectors in Australia.”

AVL said it remains focused on feasibility and engineering studies as well as construction readiness.