Vanadium prospects are being investigated by Technology Metals Australia in collaboration with multinational steelmaker Tata Steel.
- Technology Metals (TMT) enters a memorandum of understanding (MoU) for a potential offtake deal with Indian steelmaker Tata Steel
- The companies will discuss the potential offtake of vanadium pentoxide from TMT’s Murchison Technology Metals project in WA, as well as a potential investment
- Tata Steel says vanadium is a “key component” in making steel as it increases strength, reduces weight and contributes to the reduction of carbon emissions
- Technology Metals shares are down 2.27 per cent and trading at 43 cents at 2:06 pm AEDT
Technology Metals Australia Ltd (ASX:TMT) has signed a non-binding memorandum of understanding (MoU) with one of the world’s top steelmakers, paving the way for conversations over vanadium offtake.
TMT will study whether there is space for downstream technical collaboration with India’s Tata Steel, which is part of the global Tata Group, which might lead to both parties developing ferrovanadium manufacturing facilities in India and WA.
In addition, Tata Steel will discuss a potential investment in Technology Metals Australia and/or its Murchison Technology Metals Project (MTMP), which aims to produce high-purity vanadium pentoxide and possibly other downstream products like vanadium electrolyte, ferrovanadium, and vanadium nitride.
Mineral for strategic steelmaking
Vanadium products are essential to the steel industry because they improve the iron alloy’s strength, hardness, and wear resistance.
In fact, combining one kilogramme of vanadium with one tonne of steel doubles the strength of the alloy.
The construction industry consumes the most steel goods, and vanadium plays an important role in delivering cost-effective solutions by enhancing the strength of reinforcing bars in buildings, tunnels, and bridges, as well as hardening steels to resist fire, earthquake, and corrosion.
Vanadium is also utilised in aerospace applications to provide low density, high strength, and strength at high operating temperatures – all of which are required for components like aero-engine gas turbines and airframes.
In automotives, vanadium contributes to strength, dependability, ease of manufacture, and the highest strength-to-weight ratio to reduce fuel consumption and boost economic efficiency.
However, research suggests that the global energy transition is dependent on critical minerals such as vanadium, which is versatile enough to support technologies that can decarbonize the building industry.
What role does TMT play?
Technology Metals is developing the high-grade Murchison Technology Metals Project in Western Australia, 50 kilometres south of Meekatharra.
The project is intended to provide a stable, secure, long-term supply of important minerals such as vanadium, with a projected annual output of 27.5 million pounds of vanadium pentoxide over a 25-year mine life.
Between the Gabanintha and Yarrabubba deposits, the MTMP has an estimated ore reserve of 44.48 million tonnes grading 0.89% vanadium pentoxide.
Tata Steel’s role is to realise the potential of the reserve.
Tata Steel Information
Tata Steel is the world’s tenth-largest steelmaker, with a nearly US$33 billion turnover in FY22.
The steelmaking behemoth has the capacity to manufacture up to 34 million tonnes of steel each year, and it combines ferrovanadium and vanadium nitride in its steel alloying process to boost the material’s strength and wear resistance.
Tata Steel’s vice president of group strategic procurement Rajiv Mukerji said: “Vanadium is a key component in Tata Steel’s steelmaking process to increase strength and reduce weight, and as our customers increasingly look to reduce their carbon emissions, we anticipate demand for these products to grow.
“Working with Technology Metals Australia Limited on opportunities surrounding primary vanadium and ferrovanadium production aligns with Tata Steel’s strategy to ensure reliable, stable supplies of raw materials to meet our customers’ future product requirements.”
Emission reduction in steel applications
TMT managing director Ian Prentice expressed his company’s excitement to collaborate with one of the world’s top steelmakers while also strengthening Australia’s key trading ties with India.
“High purity vanadium pentoxide from the MTMP is important in producing lower emission ferrovanadium and vanadium nitride, which Tata Steel utilises in its steelmaking process,” he explained.
“Together, TMT and Tata Steel can play an important part in reducing emissions in steel applications as the world progresses towards net zero carbon emissions.”
The fine print
The Memorandum of Understanding (MoU) between TMT and Tata Steel sets a framework for continued negotiations about offtake, technical collaboration, and funding support for TMT and the MTMP, as well as any downstream processing options.
One of the key points of discussion is the technical viability of
- ferrovanadium and vanadium nitride products, vanadium content and impurities, and the resulting impact on steel characteristics/quality and value in use
- optimal production processing routes, relevant environmental regulations, availability, and cost of required inputs for production within India versus Australia.
TMT and Tata Steel will also look into whether vanadium pentoxide from the MTMP can be used to make ferrovanadium and vanadium nitride, as well as whether a Tata investment may speed up production on a new, primary vanadium source.
Finally, both parties will examine whether it is worthwhile to pursue a combined investment in downstream processing.
It should be noted that this non-binding MoU is valid for five years unless the parties mutually agree to formally dissolve before that time.