Up-and-coming Vanadium producer Australian Vanadium (AVL) has pocketed a $1.8 million government research and development refund.
The cash grant is part of the Australian Federal Government’s Research and Development (R&D) Tax Incentive Scheme for the 2019 financial year.
The scheme is designed to encourage companies to take on R&D work that benefits Australia. Companies engaging in such work are eligible for a tax offset through the Australian Taxation Office and the Department of Industry, Science, Energy, and Resources.
For Australian Vanadium, the company’s FY19 R&D work was focused on finding ways to produce vanadium from poly-metallic ore for vanadium redox flow batteries (VRFB) and steel applications.
VRFBs are designed to create reliable and safe storage of renewable energy. Vanadium can also be used to make steel alloys for space vehicles, nuclear reactors, aircraft, and more.
With these and many more uses, the metallic element can be beneficial to the country in several ways.
With the extra $1.8 million in the bank, Australian Vanadium now has $5.5 million in available cash on hand.
Further, Australian Vanadium said it is in the process of putting together a claim for its 2019/2020 R&D work.
The company is building up a vanadium production facility in Western Australia and negotiating offtake agreements with U.S., European, and Asian partners.
Shares in AVL are up 5 per cent and shares are currently worth 1.1 cents each in a $25.61 million market cap.