Australian Vanadium (AVL) investor relations material

Strategic Market Trends and Demand Outlook

• Japan and Australia are shifting toward diversified energy storage, with Japan awarding more non-lithium than lithium storage in its LTDA auction and Australia seeking alternatives to lithium-ion.

• Global VFB deployment is accelerating, with over 8 GWh operational and 44 GW in construction or announced as of 2026.

• Vanadium demand is projected to grow 13-fold from 11,600 MTV in 2024 to 154,500 MTV in 2030, driven by VFB adoption.

• Vanadium is increasingly viewed as a critical metal for energy security in markets like the U.S. and Japan.

• VFBs are gaining traction in data centres, remote mine sites, and hot climates due to safety, long life, and minimal degradation.

Business Platforms, Projects, and Operational Progress

• Three integrated value platforms—mining (shovel-ready asset in Western Australia), midstream (commercial electrolyte production), and downstream (VFB BESS deployment)—are advancing with a focus on cost reduction and project pipeline growth.

• Optimised Feasibility Study for the metals asset to be released by year-end, with one permit remaining and focus on securing offtake and funding.

• Commercial electrolyte production in Australia has led to batteries exceeding client expectations and advancing OEM qualifications.

• Pipeline includes Kalgoorlie VBESS (500 MWh), MoU with Alcoa, and VSUN Energy's Lumina architecture supporting Australian and international projects.

• Government support includes a $49 million federal grant and Green Energy Major Project status in WA.

Technology, Market Adoption, and Competitive Advantages

• Vanadium flow batteries offer zero degradation, non-flammability, long life (up to 50 years), and are fully recyclable.

• Electrolyte leasing models, as seen in China, and the V-NOMAD™ relocatable platform are designed to lower upfront costs and accelerate VFB adoption.

• VFBs are validated for extreme climates, with Horizon Power's battery operating daily in 45-50°C without cooling.

• The integrated business model spans mining, manufacturing, and deployment, targeting grid-scale, industrial, and remote applications.

• Ongoing innovation in electrolyte production and battery architecture aims to maintain cost leadership and support large-scale deployments.