Australian Vanadium Ltd (ASX:AVL) has signed a dealership agreement with Gildemeister Energy Storage GmbH of Germany, stepping up its vertical integration plan.
Gildemeister is the producer of the CellCube energy storage system, which is based on vanadium flow technology. It has so far installed more than 100 systems, AVL said in an announcement on Monday.
The dealership agreement allows AVL to market and sell Gildemeister's CellCube products in Australia through its 100%-owned, battery-focused subsidiary VSUN Pty Ltd. The deal is for an initial period of five years. It follows the signing of a memorandum of understanding (MoU) by the companies in February, which set out plans to collaborate in vanadium redox flow battery installations and electrolyte production in Australia.
The Australian company is developing the Gabanintha vanadium project in Western Australia and is also targeting the battery storage market, which is tipped for rapid growth as the penetration of intermittent renewable energy sources increases.
"The Dealership agreement allows VSUN to ramp-up its activity in commercial target markets and utility related storage opportunities. Gildemeister considers the Australian market one of enormous potential and suitability for storage systems like the CellCube. AVL and VSUN will now help to realise that potential," said AVL chief executive Vincent Algar.
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