Technology Metals Australia enters MoU to supply vanadium to Indian battery manufacturer Delectrik

Vanadium developer Technology Metals Australia (ASX:TMT) and its wholly owned subsidiary vLYTE has entered a memorandum of understanding (MoU) with privately owned Indian battery manufacturer Delectrik Systems.

The MoU encompasses both the supply of vanadium products directly from Technology Metals’ Murchison Technology Metals Project (MTMP) to Delectrik. It also encompasses the supply of vanadium electrolyte by vLYTE to Delectrik within Australia using vanadium from the MTMP. Specific volumes to be supplied are to be finalised in the next phase of the agreement.

The company reports it is progressing the development of the MTMP in Western Australia to produce ‘high-purity’ vanadium pentoxide (V2O5), and through vLYTE is investigating downstream production of vanadium electrolyte in Australia.

Technology Metals says its objective supported by this MoU, is for the MTMP to be a stable, secure, primary producer of vanadium pentoxide to support the deployment of vanadium redox flow batteries (VRFBs) for long duration energy storage across the globe.

This MoU also complements the existing vanadium pentoxide and vanadium electrolyte relationships with Indian and Japanese end users. As the MTMP development progresses, the company reports it is focused on having a ‘significant’ portion of its project production committed to ‘high-quality’ customers in rapidly developing vanadium markets.

Commenting on the MoU, Technology Metals Australia Managing Director, Ian Prentice, says: “This MoU supports TMT’s development plan for the MTMP and the secure supply of high-purity vanadium for long duration VRFBs globally.

India is a rapidly emerging renewable energy powerhouse, with the Indian government recently announcing a US$4.3 billion investment towards the country’s energy transition to help reach its goal of net zero. This MoU with fast-growing Indian battery manufacturer Delectrik reinforces TMT’s path to becoming a preferred supplier of vanadium for these batteries.

“This MoU supports TMT’s development plan for the MTMP and the secure supply of high-purity vanadium for long duration VRFBs globally”

The MoU contemplates supporting Delectrik’s VRFB rollout within Australia, demonstrating the significant potential in Australia for VRFB use in a range of applications, from replacing diesel generation at remote mine sites to storing solar energy for EV charging stations.”

Technology Metals reports the MoU is effective for 5 years unless the parties mutually agree to formally terminate earlier. Leading corporate advisory firm Newland Global Group is acting as the company’s advisor in relation to investment, offtake, and technology sharing opportunities within India.

Technology Metals also reports Delectrik is a fast-growing VRFB manufacturer based in Gurgaon, India, that produces its own vanadium electrolyte, as well as designing and manufacturing VRFB systems ranging from kilowatt to megawatt scale.

Delectrik is commercially selling its VRFB systems in several regions in addition to India, including the US, Australia, Western Europe, and the Middle East. The company recently entered a distribution and manufacturing licence with a Saudi Arabian energy systems company and will develop a megawatt scale VRFB in Europe to support electric vehicle charging stations which will be deployed in 2023.

Technology Metals reports the rollout and scale of Delectrik’s VRFB system deployment will require ‘substantial’ volumes of vanadium electrolyte.

Also commenting, Delectrik Systems Chief Executive Officer (CEO), Vishal Mittal, says: “Delectrik believes VRFBs will have a vital role in supporting the world’s transition to net zero and we are thrilled to be part of this journey with our recent deployments of batteries in India, Europe, Middle East, and Australia.

“Delectrik believes VRFBs will have a vital role in supporting the world’s transition to net zero and we are thrilled to be part of this journey with our recent deployments of batteries in India, Europe, Middle East, and Australia”

Australia is a key region for Delectrik both as a market for its flow batteries and availability of vanadium resource and as such, the company has recently established a wholly owned subsidiary Delectrik Systems Australia. The partnership with TMT is very exciting as it provides Delectrik a secure supply of high-quality vanadium as we expand our business globally.”

Technology Metals Australia is an ASX-listed vanadium developer focused on developing its flagship Murchison Technology Metals Project which is expected to meet global demand for high-purity vanadium. 

The MTMP is located 50km southwest of Meekatharra in the midwest region of Western Australia and is described as one of the ‘highest grade’ vanadium projects in the world with planned production at 6% of the current global vanadium demand.

Delectrik Systems is an Indian VRFB battery manufacturer that commercially sells its products in the US, Australia, Western Europe, the Middle East, and India.

Images: Technology Metals Australia Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.