Western Australian Government Awards $15 Million to Australian Vanadium for Advanced Battery Manufacturing Facility
Date: 09 Nov 2026 |
Funding to accelerate vanadium electrolyte production, strengthen domestic supply chains and support large-scale, long-duration energy storage projects
9 November 2026 – The Western Australian Government has awarded A$15 million in funding to Australian Vanadium Limited (ASX: AVL) to support the development of a high-capacity vanadium electrolyte manufacturing facility, marking a significant step towards expanding Australia's domestic battery manufacturing capabilities and accelerating the transition to renewable energy.
The funding, provided through the Cook Labor Government's Investment Attraction Fund (IAF) New Energies Industries Round 2, will cover 50% of the funding required for AVL's first manufacturing facility utilising its proprietary V-Nomad electrolyte production technology. AVL will be responsible for securing the remaining project funding.
The investment will support the design, construction and commissioning of a modular, relocatable facility capable of producing vanadium electrolyte for gigawatt-hour-scale vanadium flow battery projects.
Advancing Long-Duration Energy Storage
The project represents an important development in Western Australia's emerging long-duration energy storage industry.
Vanadium flow batteries store and release electricity using liquid vanadium electrolyte held in separate tanks. The technology is suited to large-scale energy storage applications and can help support electricity networks integrating increasing amounts of renewable energy.
AVL's independently developed V-Nomad technology offers a relocatable electrolyte manufacturing solution that can be deployed alongside vanadium flow battery installations, potentially reducing electrolyte production and supply costs.
The facility is expected to support future utility-scale energy storage developments, including projects being pursued by AVL's wholly owned subsidiary, VSUN Energy.
Strengthening Australia's Critical Minerals Supply Chain
The investment also supports the development of an integrated domestic vanadium supply chain, connecting Western Australia's mineral resources with advanced processing, electrolyte manufacturing and battery deployment.
By expanding local electrolyte manufacturing capacity, the project aims to increase Australian content in vanadium flow battery systems, reduce reliance on overseas supply chains and create new opportunities for domestic manufacturing.
The facility's modular and relocatable design could enable deployment across regional and industrial centres throughout Western Australia, supporting the development of energy storage infrastructure closer to where it is needed.
The project is also expected to generate skilled employment and training opportunities across advanced manufacturing, chemical processing, engineering, construction, commissioning and plant operations.
Government Backs Local Manufacturing and Clean Energy
Western Australia's State Development and Economic Diversification Minister, David Michael, highlighted the importance of the investment in strengthening the State's industrial capabilities.
"By supporting AVL's electrolyte manufacturing capability, we're creating new opportunities in advanced manufacturing while helping position WA at the forefront of long-duration energy storage technologies," Minister Michael said.
Energy and Decarbonisation and Manufacturing Minister Amber-Jade Sanderson said the investment aligned with the Government's commitment to expanding local manufacturing.
"This is another great example of the Cook Labor Government backing innovative Western Australian manufacturing projects," Minister Sanderson said.
The Government reported that manufacturing employment in Western Australia had increased by 13% over the preceding year.
Australian Vanadium Welcomes Funding Support
AVL Chief Executive Officer Graham Arvidson welcomed the funding as an important step in advancing the company's downstream manufacturing and energy storage strategy.
"The grant will support the next stage of development of our V-Nomad platform and our broader strategy of integrating Western Australian vanadium production, electrolyte manufacturing and utility-scale vanadium flow battery deployment, including through opportunities pursued by our downstream business, VSUN Energy," Mr Arvidson said.
The project is expected to contribute to Western Australia's ambitions to become a centre for critical minerals processing, advanced battery manufacturing and long-duration energy storage.
Supporting Western Australia's Energy Transition
Since its launch in 2022, the Investment Attraction Fund has supported 47 projects, awarding more than A$215.2 million in funding.
According to the Western Australian Government, these investments have generated 290 direct jobs and engaged 1,479 contractors, with more than A$4 in spending generated for every A$1 distributed through the fund.
The latest investment in AVL underscores the growing importance of vanadium-based energy storage technologies in supporting grid reliability, renewable energy integration and the development of a diversified low-carbon economy.
By combining local critical mineral resources with advanced manufacturing and utility-scale battery deployment, the project could help establish Western Australia as a significant participant in the emerging global market for long-duration energy storage.
Sources: Western Australian Government, “Cook Labor Government Boosts Large-Scale Batteries by $15m,” and Mining Weekly, “Western Australia gov backs AVL's vanadium electrolyte manufacturing platform,” by Marleny Arnoldi, 9 November 2026.