Western Australian-based resource company Australian Vanadium Limited (AVL) has secured an exclusive partnership with Sumitomo Electric Industries for the Western Australian government’s 500MWh Kalgoorlie vanadium battery energy storage system (BESS).
The partnership aims to combine established Japanese flow battery technology with local vanadium supply chain capabilities.
The partnership agreement between Australian Vanadium’s subsidiary, VSUN Energy, and Sumitomo Electric establishes the Japanese manufacturer as the exclusive vanadium flow battery technology provider for the 50MW/10-hour duration project through the expression of interest and bidding process.
Under the pre-bid agreement, Sumitomo Electric will provide VSUN Energy with vanadium flow battery technology, engineering services, and technical support throughout the competitive bidding process.
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The arrangement positions the partnership to compete for the project, which carries up to AU$150 million (US$105.99 million) in Western Australian government investment as part of the state’s long-duration energy storage and local manufacturing objectives.
Graham Arvidson, Australian Vanadium’s CEO, described the partnership as the culmination of several years of technical collaboration.
“Sumitomo Electric’s involvement reflects a relationship that has been built over several years of technical collaboration and building of mutual trust,” Arvidson said.
“Through that engagement, we have developed confidence in the reliability and performance of Sumitomo Electric’s vanadium flow battery technology, long-term performance guarantees, and the depth of engineering and financial strength behind them.”
WA project a ‘pivotal moment’ for flow batteries
The Kalgoorlie project represents a critical component of Western Australia’s broader long-duration energy storage (LDES) strategy, which has prioritised vanadium flow battery technology for grid-scale applications.
The state government previously announced plans in December for the 500MWh vanadium flow battery project in Kalgoorlie, leveraging local vanadium resources to support grid-scale energy storage.
In an interview with ESN Premium, a spokesperson for Perth-headquartered vanadium flow battery company AVESS Energy described Western Australia’s vanadium flow battery initiative as a “pivotal moment” for the technology’s commercial deployment.
Sumitomo Electric brings decades of experience in vanadium flow battery development to the partnership, with utility-scale deployments across multiple international markets.
Kazuyuki Kamada, general manager of Sumitomo Electric’s Redox Flow Battery Division, emphasised the strategic alignment between the companies.
“Through our collaboration with AVL and VSUN Energy over several years, we have developed a strong appreciation of their integrated capability and commitment to delivery in Western Australia,” Kamada said.
The exclusive arrangement prevents either party from pursuing alternative negotiations for vanadium flow battery supply to the Kalgoorlie project without the other party’s written consent.
This structure provides both companies with certainty during the competitive bidding process while establishing a framework for technical validation and independent expert review processes.
Australian Vanadium’s strategy combines upstream vanadium resource development at its Gabanintha project with midstream electrolyte production and downstream battery deployment through VSUN Energy.
The company’s mineral resource estimate totals 395.4 million tonnes at 0.77% vanadium pentoxide, including a high-grade zone of 173.2 million tonnes at 1.09% vanadium pentoxide.
Meanwhile, the partnership structure addresses technical, commercial, and delivery planning requirements for the 10-hour duration system, including system configuration refinement, cost optimisation, scheduling, and risk management protocols.
These elements support the financing and technical validation processes required for the development of utility-scale energy storage projects.
Sumitomo Electric’s vanadium flow battery technology features performance warranties extending 20 years or more, reflecting the company’s technical confidence and financial stability.
The 127-year-old manufacturer maintains diversified business operations and strong credit ratings, which provide project-financing advantages for utility-scale deployments.
The Western Australian government’s timeline indicates Stage Two of the Kalgoorlie project process will commence in March 2026, with preferred proponent negotiations expected in June 2026.
Australian Vanadium submitted its Stage One expression of interest on 30 January, 2026, positioning the company for the next phase of the competitive selection process.
If awarded the project, the partnership intends to negotiate a formal supply agreement that incorporates the technical and commercial principles developed during the bidding process, including final scope definition, performance commitments, and warranty provisions.
The Energy Storage Summit Australia 2026 will be returning to Sydney on 18-19 March. It features keynote speeches and panel discussions on topics such as the Capacity Investment Scheme, long-duration energy storage, and BESS revenue streams. ESN Premium subscribers receive an exclusive discount on ticket prices.
To secure your tickets and learn more about the event, please visit the official website.
