The share price of Australian Vanadium Limited (ASX: AVL) continued to charge more today as the company received a competitive grant from the Australian government. The grant, which is being awarded to the company under the collaborative strand of the Modern Manufacturing Initiative, is worth A$49 million.
AVL would use the grant to support the Australian Vanadium Project, which enables new production of critical minerals through the establishment of an integrated onshore vanadium supply chain. The project is located near Meekatharra and Geraldton and aims to develop an Australian vanadium industry powered by green energy. It has been granted Major Government Project status and Principal Agency status by the Government of Western Australia.
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AVL share price
Following the significant update, AVL’s stock price appeared to climb the ASX charts. As of 1:28 p.m. AEDT, AVL shares were trading at AU$0.046, up substantially by more than 30%. Interestingly, AVL’s stock price has jumped over 53% in 2022 so far and 130% in the past year.
The company’s strong share price performance can be attributed to a series of positive AVL developments that attracted investors to this high-purity vanadium producer. Some of the credit could also be attributed to strong demand for vanadium from steel industries as construction projects catch up in emerging economies.
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“Hundreds of jobs” will appear, says MD
Although the project is focused on improving Australia’s vanadium industry, it would also generate “hundreds of jobs” in Australia, says AVL chief executive Vincent Algar. He also said that the project will help develop the critical vanadium industry both domestically and internationally. The company has an innovative approach to building a fully integrated project, essentially covering all stages of production.
Vanadium is an essential element used in aerospace and chemical applications and functions as a key component in specialty steel products. It has significant and growing use in safe, long-duration energy storage applications.
Australia holds the third largest economic reserves of vanadium in the world. However, there are no active vanadium mines in the country yet. AVL aims to build on these lines and formulate off-take partnerships or agreements with countries seeking a secure supply of ultra-pure vanadium. Currently, vanadium is on the list of critical metals in many countries, including the United States, Australia, Japan, and many European countries.
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AVL also has a collaboration with ATCO Australia for green hydrogen and Bryah Resources Limited (ASX: BYH) for the recovery of nickel, copper and cobalt from the tailings stream. Going forward, the company will finalize a legal agreement for the grant, with related terms and conditions to be agreed.
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