This will allow Australian Vanadium to trial its redox flow battery connected to wind or solar at IGO's Nova nickel project to supply power independent from the grid.
The power system will supply about 300 kilowatt hours of renewable energy and ensure waterbore pumps remain operational.
The renewable project will be bolstered by a diesel generator.
Under the agreement Australian Vanadium will provide its battery tech for free over the 12-month trial period.
If the trial proves a success, IGO will either buy the setup outright or rent it from Australian Vanadium.
Australian Vanadium managing director Vincent Algar said working with IGO on this project would accelerate the both companies' and the broader mining industry's objectives towards carbon neutrality.
"The installation of a standalone power system based on vanadium technology for pumping applications enables diesel to be almost entirely eliminated, helping reduce overall carbon emissions and providing reliable green power," he said.
Algar said he hoped to duplicate the system following the trial.
The agreement with IGO came just a day after Australian Vanadium announced it would collaborate with Spanish battery manufacturer E22 to develop the technology.
E22 will provide the batteries for Australian Vanadium's standalone power systems.
Australian Vanadium's mine near Meekatharra will provide the vanadium material for the batteries.
The vanadium ore will be processed at Australian Vanadium's Kwinana plant for the battery manufacturing industry. In July Australian Vanadium was awarded a $3.7 million grant to build the value-adding vanadium electrolyte manufacturing plant.
Once operational, the company hopes the plant will turn out 33 megawatts worth of redox flow batteries for the domestic market.
Part of the funding has gone to developing the prototype power system and battery that will be deployed at IGO's mine.