{"id":2860660,"version":0,"headline":"Australia's AVL partners with Alcoa on vanadium Bess","dateModified":"2026-08-04T05:55:48Z","datePublished":"2026-08-04T05:55:13Z","articleBody":"

Developer Australian Vanadium (AVL) and its fully-owned subsidiary VSUN Energy have signed a non-binding memorandum of understanding (MoU) to conduct a scoping study for a vanadium battery energy storage system (VBess) at aluminium producer Alcoa's alumina refining operations in Western Australia (WA).

The study will assess the financial and technical merits of a 400-640MWh vanadium Bess for increasing Alcoa's renewable energy use and reducing its electricity costs during peak demand periods, AVL said on 4 August.

The study will also examine \"electrolyte supply considerations,\" which may include sourcing from AVL's 33 MWh/yr vanadium electrolyte plant in Perth, WA.

AVL is one of four vanadium developers in WA and is currently conducting a feasibility study for its 11,200 t/yr vanadium pentoxide mine, located 50km south of Meekatharra in WA.

The company partnered with Japanese manufacturer Sumitomo Electric to apply for the WA government's A$150mn ($105mn) tender to construct a 500MWh VBess in Kalgoorlie and submitted its stage-two expression of interest on 27 July.

Alcoa expands aluminium operations

Alcoa announced in June its $4.1bn acquisition of Australian miner South32's bauxite, alumina and aluminium assets across Australia, South Africa and Brazil. The deal is expected to close in the first half of 2027.

This includes the 4.4mn t/yr Worsley alumina refinery, which will be added to Alcoa's existing WA alumina portfolio, including the 4.2mn t/yr Pinjarra refinery and the 2.85mn t/yr Wagerup refinery.

Alcoa currently operates its WA alumina refineries using natural gas. The company extended a gas supply deal with Woodside for a further 31.1 petajoules (PJ) (830mn m³) over three years from 2027-2030 in June. Alcoa also has a 10-year gas supply deal with US oil firm Chevron for 130PJ starting from 2028.

The Australian government will offer A$2bn in low-emissions aluminium production credits from 2028-29 to help smelters transition to renewable energy sources by 2035.

South32's Worsley refinery emitted 3.18mn t/yr of scope 1 CO2 equivalent (CO2e) in 2024-25, making it the third largest non-LNG emitter in Australia, according to Australia's Clean Energy Regulator. Meanwhile, Wagerup and Pinjarra emitted a collective 2.58mn t/yr of scope 1 CO2e in 2024-25.

By Daniel Gage-Brown

","dateline":"Sydney, 4 August (Argus)","license":"","copyrightHolder":"Argus Media group","copyrightYear":2026,"taxonomy":{"contexts":[{"name":"Circular economy","children":[{"name":"CO2 reduction","children":[]},{"name":"Technology","children":[]}]},{"name":"Corporate","children":[{"name":"Strategy","children":[]}]},{"name":"Fundamentals","children":[{"name":"Demand","children":[]}]}],"regions":[{"name":"Asia-Pacific","children":[{"name":"Australasia","children":[{"name":"Australia","children":[]}]}]}],"sectors":[{"name":"Battery materials","children":[{"name":"Battery metals and chemicals","children":[]}]},{"name":"Electricity","children":[{"name":"Batteries","children":[]}]},{"name":"Emissions","children":[{"name":"CO2","children":[]}]},{"name":"Metals","children":[{"name":"Non-ferrous","children":[{"name":"Base metals","children":[{"name":"Aluminium","children":[]}]},{"name":"Minor metals","children":[{"name":"Vanadium","children":[]}]}]}]}]},"pullQuote":null,"newsType":"Daily news","language":"en-GB","keywords":null,"isFree":true,"isFeatured":false,"body":"

Developer Australian Vanadium (AVL) and its fully-owned subsidiary VSUN Energy have signed a non-binding memorandum of understanding (MoU) to conduct a scoping study for a vanadium battery energy storage system (VBess) at aluminium producer Alcoa's alumina refining operations in Western Australia (WA).

The study will assess the financial and technical merits of a 400-640MWh vanadium Bess for increasing Alcoa's renewable energy use and reducing its electricity costs during peak demand periods, AVL said on 4 August.

The study will also examine \"electrolyte supply considerations,\" which may include sourcing from AVL's 33 MWh/yr vanadium electrolyte plant in Perth, WA.

AVL is one of four vanadium developers in WA and is currently conducting a feasibility study for its 11,200 t/yr vanadium pentoxide mine, located 50km south of Meekatharra in WA.

The company partnered with Japanese manufacturer Sumitomo Electric to apply for the WA government's A$150mn ($105mn) tender to construct a 500MWh VBess in Kalgoorlie and submitted its stage-two expression of interest on 27 July.

Alcoa expands aluminium operations

Alcoa announced in June its $4.1bn acquisition of Australian miner South32's bauxite, alumina and aluminium assets across Australia, South Africa and Brazil. The deal is expected to close in the first half of 2027.

This includes the 4.4mn t/yr Worsley alumina refinery, which will be added to Alcoa's existing WA alumina portfolio, including the 4.2mn t/yr Pinjarra refinery and the 2.85mn t/yr Wagerup refinery.

Alcoa currently operates its WA alumina refineries using natural gas. The company extended a gas supply deal with Woodside for a further 31.1 petajoules (PJ) (830mn m³) over three years from 2027-2030 in June. Alcoa also has a 10-year gas supply deal with US oil firm Chevron for 130PJ starting from 2028.

The Australian government will offer A$2bn in low-emissions aluminium production credits from 2028-29 to help smelters transition to renewable energy sources by 2035.

South32's Worsley refinery emitted 3.18mn t/yr of scope 1 CO2 equivalent (CO2e) in 2024-25, making it the third largest non-LNG emitter in Australia, according to Australia's Clean Energy Regulator. Meanwhile, Wagerup and Pinjarra emitted a collective 2.58mn t/yr of scope 1 CO2e in 2024-25.

By Daniel Gage-Brown

","lead":"Developer Australian Vanadium (AVL) and its fully-owned subsidiary VSUN Energy have signed a non-binding memorandum of understanding (MoU) to conduct a scoping study for a vanadium battery energy storage system (VBess) at aluminium producer Alcoa's alumina refining operations in Western Australia (WA).","cmsId":"24969845","source":"Censhare"}