American Vanadium had a full 2013, but the company is
looking forward to the new year, with many milestones
| Samples from American
completed its feasibility study in late 2013 for its Gibellini
project, which placed it as potentially the lowest cost
vanadium producer in the world. It is now awaiting its
advanced permitting permissions so that it can push on with its
plan to start construction in September 2014.
Vandium has gone from being a junior explorer to finishing its
feasibility study and is now in a position where investors are
looking with interest at what the company can produce, Scott Eldridge,
director, project finance for the company told
The company's Gibellini Vanadium Project, located in Nevada, is
being designed to economically produce vanadium electrolyte for
the energy storage industry, as well as vanadium products for
the steel and alloying industries.
We need to get financing, but interest has
been great, Eldridge said. I have worked across a
range of commodities and the interest here is as strong as in
any other project I have worked on, he
Vanadium is unique in that it already has a partnership with a
battery manufacturer, Germanys Gildemeister, which means
it is primed to sell products in Europe. In the US, American
Vanadium will act as a seller for the German company.
produces CellCube vanadium redox flow batteries.
just a mining company we are vertically integrated and
we are looking at energy storage, Eldridge told IM.
The Gibellini project has an estimated output of 11m lb (4,989
tonnes) and should be coming online in the next three
The company believes the one mine could potentially supply up
to 5% of world demand.
Gibellini is the only vanadium mine in the US, which, the company says
provides a critical source of vanadium electrolyte for
Gildemeisters energy storage systems.
With the onsite production process designed to yield
vanadium pentoxide, the project will create
opportunities for off take agreements in the steel
industry, the company said.
Furthermore, since the process already yields
vanadiumin sulphuric acid
in an intermediary step to producing vanadium pentoxide, it is
expected that this can be pulled from the process and used
directly as an electrolyte for grid scale energy
The product will be processed on site and will focus on North
American distribution because it will most likely be the sole
domestic source but the company is open to looking other
markets also, it toldIM.
Theres a market in Asia for sure, Eldridge
Although American Vanadium said that it would look at steel
markets, which make up the main crux of demand for vanadium,
the company said it is mainly looking at the flow battery
The batteries will be aimed at the mass storage market in the
500KW to 5MW range.
American Vanadium has already seen interest both from larger
scale grid storage customers and from smaller scale customers,
which will use the batteries to store energy generated by
renewable sources (chiefly wind and solar).
Batteries that store energy generated by renewable sources can
also be used to take entire communities off the grid as the
batteries mean that intermittent generation of energy by
renewable sources does not mean an intermittent supply of
electricity. Several smaller communities are investing in this
approach and, in the Middle East, Abu Dhabi is developing the
city of Masdar which will run entirely on renewable
It is also looking to establish partnerships with the First
Nation communities in Canada.
One of the things we are pursuing is the remote locations
of the First Nations, Eldridge said.
In these remote Canadian areas costs can climb to $1/kWh,
Eldridge explains. By using a vanadium energy storage unit, the
company believes it can cut costs in half.
According to its feasibility study, American Vanadium could
potentially become the lowest cost primary
vanadium producer in the world with a unit
operating cost of $4.10/lb.