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[Ferro-Alloys.com] Western Australia’s push to establish a vanadium battery industry has gained further momentum, with the State Government committing to a reduced royalty framework and additional funding for industrial areas.

WA Premier Roger Cook announced that if re-elected, the WA Government would introduce a 2.5 per cent royalty rate for vanadium products while maintaining a zero royalty on vanadium electrolyte. This builds on the party’s recent pledge to install a 50-megawatt, 10-hour vanadium battery in Kalgoorlie using locally sourced materials.

The Association of Mining and Exploration Companies (AMEC) has welcomed the move.

“AMEC has been campaigning for this important royalty change since 2021, when it became obvious that new vanadium products, such as vanadium pentoxide, weren’t properly captured by the state’s royalty framework,” AMEC chief executive officer Warren Pearce said. “The decision to also retain no royalty on vanadium electrolyte, creates a powerful incentive for companies to invest in going down-stream and developing electrolyte, the key ingredient in vanadium batteries.

“The opportunity for Western Australia to value-add to our vanadium, make vanadium electrolyte, and build vanadium batteries in Western Australia, for use here in Western Australia and Australia, is an opportunity too good to miss.”

The WA Government has also pledged $500 million towards the state’s strategic industrial areas, reinforcing its support for the emerging vanadium sector. These commitments, alongside the Federal Government’s Critical Minerals Production Tax Incentive, will assist in positioning WA as a leader in vanadium battery production.

The state is home to several vanadium resources, five of which are investment ready.

One of these projects is the Australian Vanadium project, which is one of the largest vanadium deposits globally. Situated south of Meekatharra, the mine is expected to be producing by 2027.

Australian Vanadium Limited – owner of the Australian Vanadium project – recently announced it would join the WA Government’s ‘Green Energy Major Projects’ group while it continues the next phase of its optimised feasibility study.

• [Editor:tianyawei]