Australian Vanadium has signed a non-binding agreement with US battery developer Tyfast Energy to test its planned vanadium oxide in Tyfast's fast-charging battery anodes. The 18-month programme could lead to supply talks if the material qualifies.
At a glance
- Tyfast's lithium vanadium oxide cells are aimed at mining, trucking, construction and defence.
- Testing runs from sample lots through bench and pilot-scale qualification, and could include mine-site and fleet trials.
- The memorandum is non-binding and sets no volumes or prices.
Background
Vanadium is mostly used to strengthen steel, and a growing share goes into vanadium flow batteries for grid storage. Tyfast uses it differently: as lithium vanadium oxide in the anode, the negative side of a lithium-ion battery, in place of the graphite most cells use. Australian Vanadium is developing the Gabanintha vanadium project in Western Australia.
What happened
Australian Vanadium (ASX: AVL) announced on October 8 that it has signed a non-binding, 18-month memorandum of understanding with Tyfast Energy, a US battery technology company. The two will evaluate AVL's planned vanadium oxide products for use in Tyfast's lithium vanadium oxide anode technology.
The work includes exchanging technical information, testing sample lots and bench and pilot-scale qualification. It could extend to mine-site and fleet trials and talks with vehicle makers. The partners will also look at Australian, US and allied government funding.
What Tyfast's batteries do
Tyfast says its cells charge to more than 80% in under six minutes at room temperature and in under 11 minutes at -20°C, in 3 amp-hour pouch cells. It reports energy density of about 200 to 250 watt-hours per kilogram and more than 10,000 cycles in smaller test cells.
The company says the technology is being developed for US defence uses, including Army ground vehicles and Navy expeditionary energy programmes.
What it means
For AVL, it is a possible new market beyond vanadium flow batteries. "This collaboration with Tyfast provides an opportunity for AVL to evaluate participation in advanced battery technologies in addition to our established vanadium flow battery market," chief executive Graham Arvidson said.
The agreement commits neither side to buy or sell. A successful evaluation could lead to demonstration projects, pre-commercial supply and talks on a longer-term offtake.
Our read
Outlook: neutral. A non-binding testing agreement with no volumes does not change vanadium demand today.
What to watch
- Results of sample and pilot-scale testing during the 18-month programme.
- Any move from the non-binding memorandum to a supply or offtake agreement.
- Progress on AVL's Gabanintha project, which would supply the vanadium.
For information only, not investment advice.
Detailed analysis
Timeline
- 2026-10-08: Australian Vanadium and Tyfast Energy sign a non-binding 18-month memorandum of understanding.
Demand Drivers
Vanadium-based anodes for fast-charging lithium-ion batteries could become a new source of vanadium demand if they reach commercial scale.
Supply Drivers
AVL's Gabanintha project in Western Australia would be the source of the vanadium oxide being tested.
What could lift prices
- A new battery use could widen vanadium demand beyond steel and flow batteries.
- Tyfast says its technology is being developed for US defence programmes.
What could weigh on prices
- The memorandum is non-binding and commits neither side to any volumes.
- Commercial supply depends on testing that will take up to 18 months.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Australia | Low | An Australian vanadium developer gains a possible new battery market. |
| United States | Low | A US battery developer is testing an allied source of vanadium. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Battery Manufacturing | Positive | It tests an Australian vanadium supply for a fast-charging anode technology. |
| Critical Minerals Mining | Positive | It could open a new market for Australian vanadium. |
Who gains, who loses
- Australian Vanadium: It gains a route into heavy-duty lithium-ion batteries alongside flow batteries.
- Tyfast Energy: It gets a possible allied supply of vanadium oxide for its anodes.
Other ways this could play out
- If the material qualifies, the partners could move to demonstration projects and supply talks.
- If it doesn't, the memorandum ends without any commitment on either side.
Price risks
- Vanadium prices depend mainly on steel demand, which this agreement does not affect.
- Any new battery demand would take years to show up in the market.
Australia
United States