Australian Vanadium Limited (AVL) has announced that its subsidiary, VSUN Energy, has signed a pre-bid agreement with Japan's Sumitomo Electric Industries to jointly participate in the bidding for the Kalgoorlie Vanadium Battery Energy Storage System (VBESS) project proposed by the Western Australian government. The project is planned with a capacity of 50 MW/500 MWh, aiming to provide a locally manufactured 10-hour vanadium flow battery solution to support regional grid stability and long-term energy storage development.
The Kalgoorlie VBESS project has received A$150 million (approximately US$106 million) in funding from the state government. As part of Western Australia's long-term energy storage and local manufacturing plan, it will help enhance the reliability of the Goldfields grid. The collaboration between AVL and Sumitomo Electric combines Japan's mature vanadium flow battery technology with Australia's local vanadium supply chain resources, providing a structured framework for technical integration, commercial planning, and project delivery during the bidding phase.
Under the pre-bid agreement, Sumitomo Electric has been designated as the exclusive vanadium flow battery technology supplier for the Kalgoorlie project, covering the entire process from the submission of expressions of interest to the bidding process. The Japanese company will provide vanadium flow battery technology, engineering support, and related services to VSUN Energy, supporting AVL's strategy for a vertically integrated vanadium flow battery supply chain, covering all stages from mining and processing to electrolyte production and battery deployment.
AVL CEO Graham Arvidsson stated that Sumitomo Electric's participation is based on a relationship built over years of technical cooperation. He said, "Through this collaboration, we have developed full confidence in the reliability, performance, long-term guarantees of Sumitomo Electric's vanadium flow battery technology, as well as its engineering capabilities and financial stability. Bringing this partnership and advanced technology into the Kalgoorlie VBESS project enhances execution certainty and complements the integrated capabilities developed by AVL and VSUN Energy in Western Australia."
Kazuyuki Kamata, General Manager of Sumitomo Electric's Redox Flow Battery Division, pointed out that the Kalgoorlie project provides a significant opportunity for the large-scale application of proven vanadium flow battery technology. This collaboration advanced after VSUN Energy submitted the project's Phase 1 expression of interest to the Western Australian government last month. The state government indicated it had received over 20 Phase 1 responses, with Phase 2 planned to commence in March, involving detailed evaluation of the business case, and negotiations with the preferred bidder expected to begin in June.
If the Kalgoorlie Vanadium Battery Energy Storage System project is ultimately awarded to VSUN Energy and Sumitomo Electric is approved as the preferred technology supplier, both parties plan to sign a formal supply agreement for project delivery, further advancing the development of vanadium flow battery energy storage projects in Western Australia.
