With a new processing facility set to come online in WA, industry leaders are optimistic about vanadium’s future in Australia.
When the Western Australian Planning Commission granted approval for Australian Vanadium’s Tenindewa processing facility, it represented a critical step in the company’s ambition to build a fully integrated, homegrown vanadium value chain within the state.
The approval of the Tenindewa facility, located around 65km east of Geraldton in the mid-west region of Western Australia, follows a favourable assessment from the Significant Development Assessment Unit and aligns with the Federal Government’s Critical Minerals Strategy and the Future Made in Australia plan.
This development paves the way for one of the first fully integrated vanadium value chains in Australia, extending from mine to battery electrolyte production.
What is vanadium?
A transition metal known for its durability, strength and corrosion resistance, vanadium appears as a soft, silvery-grey element that is rarely found in pure form, but rather more often extracted in compounds from minerals like vanadinite.
About 80 per cent of the vanadium produced around the world is used as an additive to steel, significantly enhancing its strength and resistance to shock and vibration. Such alloys are found in critical industrial components such as piston rods, tools, axles and even nuclear reactor structures thanks to vanadium’s low neutron absorption.
Beyond metallurgy, vanadium compounds serve as catalysts in producing sulfuric acid, pigments in glass and ceramics, and key components in superconducting magnets.
The element has more recently gained attention for its role in vanadium redox flow batteries (VRFBs). In these batteries, vanadium serves as the electrolyte and, unlike lithium-ion systems, the batteries can be cycled repeatedly without degradation.
They are non-flammable, have an operational life in excess of 20 years, allow for rapid energy release, and can be expanded by installing larger electrolyte tanks. This makes them well-suited to renewable energy grids, electric vehicle (EV) charging infrastructure, and remote power systems.
Their scalability and durability make VRFBs a powerful addition to Australia’s energy landscape.
Australia holds the largest share of economic demonstrated vanadium resources in the world, primarily across Queensland and Western Australia, accounting for close to half of the world’s known deposits. Government data shows a 10 per cent growth in resources of critical battery minerals (including vanadium) in recent years.
Plans for the future
Against this resource strength, Australian Vanadium’s bankable feasibility study confirms its project could become a globally significant primary vanadium producer.
Supported by a substantial $49 million grant from the Federal Government’s Modern Manufacturing Initiative, Australian Vanadium is advancing with a “pit-to-battery” model that includes integrated mining near Gabanintha, processing at Tenindewa, and electrolyte production for batteries.
In Queensland, the Vecco Group is developing the Julia Creek vanadium project with plans to start operations by 2027. Anticipated to generate more than 2000 jobs and tens of billions of dollars in economic output, the project will produce vanadium concentrate and battery-grade electrolyte in Townsville.
The expected demand for vanadium electrolytes is growing rapidly globally and is projected to increase eightfold by 2050. The Queensland Government is actively supporting this expansion with critical mineral zone funding and regional infrastructure upgrades that include transmission lines.
The Future Made in Australia package has introduced tax incentives covering 10 per cent of production and refining costs for about 31 critical minerals, including vanadium, an initiative welcomed by the industry as a signal of long-term support and investment certainty.
However, the vanadium sector is not without its challenges.
In northern Queensland, for example, the industry is grappling with a shortage of skilled labour. According to CSIRO senior researcher Dr Chris Vernon, transitioning coal miners to vanadium roles is a complex process due to the technical nature of the operations.
“When you come down to things like critical minerals, you’re talking about something that’s at a far smaller scale,” he said in 2022. “There’s a lot more technical expertise required.”
To help overcome this issue, the Queensland Government has launched a $3 million workforce development program to boost technical skills in the critical minerals sector.
That said, industry leaders still remain optimistic about vanadium’s future in Australia.
Australian Vanadium chief executive officer Graham Arvidson described the Tenindewa approval as a milestone for establishing a homegrown vanadium supply chain delivering long-term economic and social benefits to regional Western Australia.
“The Tenindewa processing facility will bring long-term economic and social benefits to the mid-west, including job creation, regional investment and new opportunities across the critical minerals and renewable energy sectors,” he said.
“We sincerely thank the WAPC [Western Australian Planning Commission], SDAU [Significant Development Assessment Unit] and all stakeholders who contributed thoughtful feedback during the application process.”
Vecco Group managing director Tom Northcott emphasised his belief that establishing an onshore vanadium industry will attract investment, support local manufacturing, and serve growing demand from battery producers in Australia and overseas.
“Vecco Group’s vanadium battery manufacturing facility is the first in Australia and joins a growing list of plants being constructed and operated around the world [including] the USA, Europe, Japan, China and Korea,” he said.
“The world-class vanadium resources and government-owned energy businesses puts Queensland in an enviable position, creating a local and secure battery supply chain to support the energy transition.
“Our Vecco vanadium battery electrolyte manufacturing plant currently in operation in Townsville was the first in Australia. Our expansion with the planned second facility will significantly increase output.”
“There is significant demand for our vanadium battery electrolyte product from Queensland mined vanadium. By establishing a vanadium industry here in Queensland, multiple mines and battery manufacturing facilities can be supported, enabling export opportunities for locally manufactured vanadium and the battery electrolyte.”
Vecco’s next steps include completing feasibility and environmental assessments, securing finance, and preparing for construction, while Australian Vanadium moves into detailed engineering for its Tenindewa processing plant.
With a strong resource base, supportive government policies, and the strategic requirement to power energy storage for a greener grid, vanadium mining and manufacturing in Australia is gearing up to become a powerful driver of economic growth.
Companies like Australian Vanadium and Vecco are helping to put the country in a position to capitalise on global the energy transition, helping to ensure that something as technical and elemental as vanadium will help shape a clean energy future.