Manufacturing ambitions in Western Australia’s energy storage sector have moved a step forward, with Australian Vanadium Limited confirming its subsidiary VSUN Energy has entered a pre-bid agreement with Sumitomo Electric Industries for the proposed Kalgoorlie Vanadium Battery Energy Storage System (VBESS).
In a media release, the ASX-listed company said the agreement positions Sumitomo Electric as VSUN Energy’s exclusive vanadium flow battery technology provider through the expression of interest and bid process for the 50 megawatt, 10-hour project, which is intended to support local manufacturing objectives alongside long-duration energy storage.
The Kalgoorlie VBESS project is being progressed by the Western Australian Government, which has indicated a commitment to invest up to $150 million as part of its long-duration energy storage and local manufacturing agenda. Australian Vanadium and VSUN Energy have already lodged a Stage One expression of interest.
Australian Vanadium chief executive Graham Arvidson said the agreement reflects an established technical relationship between the parties.
“Sumitomo Electric’s involvement reflects a relationship that has been built over several years of technical collaboration and building of mutual trust,” he said.
“Bringing this established relationship and Sumitomo Electric’s leading technology into the Kalgoorlie VBESS process strengthens execution confidence and complements the integrated capability that AVL and VSUN Energy have developed in Western Australia.”
Under the arrangement, Sumitomo Electric will provide technology, engineering input and support services during the bid process, shouldering no obligation to supply equipment unless the project is awarded and a definitive supply agreement is reached. Australian Vanadium noted that there is no certainty the bid will be successful.
Sumitomo Electric’s general manager of its Redox Flow Battery Division, Kazuyuki Kamada, said the company viewed the proposal as an opportunity to deploy established technology at scale.
“The Kalgoorlie VBESS represents an important opportunity to apply proven vanadium flow battery technology, and we look forward to supporting VSUN Energy through the EOI process,” he said.
Australian Vanadium said the collaboration brings together Sumitomo Electric’s globally deployed vanadium flow battery systems with its own vertically integrated Australian vanadium supply chain, spanning resources, electrolyte production and downstream battery deployment.
The company added that the agreement also sets out confidentiality, intellectual property protections and termination provisions typical for a bid-stage arrangement.
The state’s assessment process is continuing, with Stage Two of the EOI expected to begin in March and negotiations with a preferred proponent anticipated from June, subject to government review.
