• AVL signs variation to grant agreement with Commonwealth for $49 million under Modern Manufacturing Initiative
• Grant supports construction and commissioning of AVL's vanadium processing facilities
• Funding to be delivered through re-profiled progress payments over 2026-2028

Australian Vanadium Limited (AVL) has announced that it has signed a variation to its Grant Agreement with the Commonwealth for the $49 million grant under the Modern Manufacturing Initiative - Manufacturing Collaboration Stream. The variation aligns the Grant Agreement with AVL's ongoing work to create an integrated vanadium project following its successful merger with Technology Metals Australia. The grant will support the construction and commissioning of the crushing, milling and beneficiation plant as well as the high-purity vanadium processing facility of the Australian Vanadium Project in Western Australia. To date, AVL has received $24.5 million in progress payments under the Grant Agreement, and subject to the achievement of project milestones and compliance with the Grant Agreement, ongoing funding of up to a further $24.5 million is expected to be delivered through re-profiled progress payments over the 2026-2028 financial years. The updated agreement incorporates the outcomes of the almost completed Optimised Feasibility Study, provides for an expanded program of work to unlock additional value from the combined projects, and includes a new completion date of 31 March 2028 with the Grant Agreement ending on 31 July 2029. AVL's CEO, Graham Arvidson, commented that the grant variation represents a strong endorsement of the Australian Vanadium Project and AVL's commitment to building a fully integrated, value-adding vanadium supply chain in Australia.

The grant is expected to deliver up to $4.9 million in the current FY26 financial year as AVL exhausts the unspent grant funds on hand, with up to a further $17.6 million expected over FY27 and FY28, subject to the achievement of milestones and compliance with the Grant Agreement.

AVL remains focused on progressing its integrated vanadium project, completing feasibility and engineering activities, and advancing construction readiness. The company continues to work closely with government and industry stakeholders to support the establishment of a sovereign vanadium supply chain and enable the energy transition.