Under the scope of that MoU TMT and LE System have teamed to develop vanadium electrolyte production capacity in the country.

They plan to use LE System's vanadium redox flow battery technology on ore sourced from TMT's Murchison project in Western Australia, which includes both the Gabanintha and Yarrabubba projects.

LE System's technology can also extract vanadium from waste streams.

According to a 2019 definitive feasibility study Gabanintha would have a project net present value of US$924 million over a 16-year life-of-mine, based on mining reserves of 29.6 million tonnes grading at 0.88% vanadium.

Yarrabubba also appears promising, based on mineral resources of 36.6Mt grading 0.8% vanadium, which includes a high-grade patch of 19Mt at 1.1% vanadium.

As part of the feasibility study the partners will look at operating, capital and permitting factors associated with development of the plant, with suitable locations also to be scoped.

LE System CEO Junichi Sato said with the utility energy storage solutions market expanding rapidly, it was important to broaden the company's regional vanadium electrolyte production capacity.

"We have known TMT for some time and LE System are very pleased to be partnering with such a high-quality Australian company to support its downstream processing initiatives," he said.

TMT managing director Ian Prentice said the downstream processing opportunities for vanadium from the Murchison project were important for the future demand of vanadium and key to addressing climate change.

Under the terms of the MoU the companies will work toward a binding licencing agreement and offtake agreement, to supply vanadium products to LE System over the term of the MoU, which is effective until June.