To be quite frank, I would just prefer AVL to focus in the now on entering the steel market. Since steel takes up more than 90% of vanadium demand, that should be the 100% focus of AVL in the now IMO.
Obviously in time (mid 2020s my guess) vanadium batteries will take of but in the now AVL just need to concentrate on entering the market by targeting steel, concentrate on that only, get the PFS and bankable study done, get Offtakes done, and then become a miner. After that they can seek to diversify into batteries, because in the now I see batteries as a distraction, a distraction VA spends way too much time on (i.e. if you look at VA's most recent presentations, about half the presentation is on vanadium batteries btw).
Having said that, lithium's role is in the growing EV (moveable market) and very small scale battery storage (kW instead of MW and read by this your storage batteries in the home). MW storage (i.e the stationary market) IMO is vanadium's sphere but takeup is a viscous circle as need the price of vanadium to reduce to encourage takeup. Low cost producers, should AVL ever become one, will remain in the market as supply increases - that is need increased supply sources - but the current price of vanadium itself is an obstacle IMO on battery takeup in the now..
Having said the above, the thing renewable advocates in the Li space in the stationary market don't talk to much about is the life expectancy of lithium batteries (which obviously will have issues around storage of the waste at end of life) compared to vanadium batteries. Give it a few years and I suspect many will wake up and realise this additional benefit for vanadium (hence why I see targetting the battery market a distraction until the market wakes up and realises the issues itself).
In terms of EV vehicles no real impact as the life of a lithium battery will be better or equivalent to a standard battery in a combustion vehicle.
That is where IMO vanadium has further advantages, but in net present valuations what generally happens after 10 years by the private sector is often discounted quite heavily hence why people still consider lithium in the stationary market, albeit vanadium batteries are better for large energy storage in the stationary market space.
Anyway I digress again, and AVL just target the steel market for now which the SS focused on and I suspect the upcoming PFS will do too.
All IMO IMO IMO
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