Yep, this morning, Australian Vanadium told investors that its shares would be spending the day in a trading halt. The purpose of this trading halt? Australian Vanadium is set to merge with another ASX vanadium share.

The company confirmed to investors this morning that Australian Vanadium has agreed to a $217 million merger with Technology Metals Australia Ltd (ASX: TMT).

This will see Australian Vanadium acquire all of Technology Metals' shares, with all shareholders to receive 12 Australian Vanadium shares for every Technology Metals share owned. According to the release, this implies an offer price of 32.4 cents per Technology Metals share. Technology Metals (which is also in a trading halt today) last traded for 29.5 cents per share on Friday.

As per the announcement today, the Technology Metals board has "unanimously recommended" the merger to shareholders and will be voting in favour of the merger in the absence of a superior offer.

The merged company will continue trading as Australian Vanadium if all goes to plan.

Australian Vanadium price on ice as merger gets underway

In addition to this news, Australian Vanadium also announced a capital raising in the form of an institutional share placement in order to raise $15 million. According to the company, this will "fund ongoing project and corporate initiatives during the transaction period".

Australian Vanadium told investors that, "the combination of AVL and TMT will create the leading Australian vanadium developer and will provide maximum flexibility to realise the full value of the asset base as a result of operational and corporate synergies expected to arise from consolidation into a single, integrated operation".

Here's some more of what Australian Vanadium CEO Graham Arvidson had to say about today's news:

The combination of Australian Vanadium and Technology Metals Australia is transformational for both
companies and marks a significant milestone in both management teams' efforts to develop their respective projects. The logical consolidation of two adjoining projects on the same orebody will unlock material synergies for both sets of shareholders.

If successful, the transaction will create the leading ASX listed vanadium developer and a world-class asset of scale located in a Tier-1 mining jurisdiction. AVL's institutional placement ensures that the combined group will be well-funded to progress integration and the go-forward development strategy…

The transaction will leverage the best of both organisations, including best in class technical work, assets and people, and will result in AVL becoming the leading force in the Australian vanadium sector.

The Australian Vanadium share price has had a tough year in 2023, losing 10% of its value year to date. Over the past five years, the Australian Vanadium share price is down 46%, as you can see below:

The Technology Metals share price has seen a similar trajectory in recent years. Technology Metals shares are down around 15.7% over the past 12 months, and have lost just over 48% over the past five years:

The post Why is the Australian Vanadium share price starting the week on ice? appeared first on The Motley Fool Australia.

And much of their gains have been driven by demand for lithium-ion batteries. But there's another green metal in the renewable energy storage game – and it's also abundant in Australia.

Enter vanadium. The element is usually used alongside iron to produce steel.

However, another use for vanadium that might pique the interest of those invested in ASX 200 lithium shares is in battery technology. Here's the lowdown.

Is vanadium coming for your ASX 200 lithium shares?

Vanadium is an essential component of vanadium redox flow batteries (VRFB).

Unlike lithium-ion batteries, these can be re-used over and over, boast a typical lifespan of more than 20 years, and have a low risk of catching fire.

They can also be a more economical energy storage solution. University of New South Wales VRFB researcher Chris Menictas was quoted by ABC News as saying:

As you start increasing the storage time, vanadium becomes cheaper. At more than three hours' storage, vanadium is cheaper than lithium-ion.

Though, VRFBs aren't a total replacement for lithium-ion batteries. As the publication notes, they're far larger, making them unsuitable for phone or car batteries, and vanadium is more expensive to produce than lithium.

Thus, they will likely be used in industrial and grid energy storage solutions – an important piece of the renewable transition puzzle.

4 ASX shares involved in vanadium production

Australia's vanadium mining sector is still in its infancy, with a handful of projects in development stages. One major deposit is the Saint Elmo Vanadium Project, located in outback Queensland. It's in the hands of unlisted operator Mulicom Resources.

Fortunately, however, there's a large handful of Australian-listed vanadium shares out there.

First up is Neometals Ltd (ASX: NMT). The $467 million company has a collaboration agreement to look into constructing a vanadium recycling facility. It also owns Western Australia's Barrambie Titanium and Vanadium project.

Another ASX vanadium stock is Technology Metals Australia Ltd (ASX: TMT). It's behind Western Australia's Murchison Technology Metals Project – one of the world's highest-grade vanadium projects.

It was recently joined on the bourse by Richmond Vanadium Technology Ltd (ASX: RVT), owner of Queensland's Richmond Vanadium Project. The project is the first critical minerals endeavour to be dubbed a 'coordinated project' by the state's government.

Finally, Australian Vanadium Ltd (ASX: AVL)'s Australian Vanadium Project, located in Western Australia, has been awarded major project status by the Australian government and lead agency status by the state's government.

The post Could vanadium spell the downfall of your ASX 200 lithium shares? appeared first on The Motley Fool Australia.

That's mostly because Australia has been blessed with an abundance of natural resources.

When it comes to critical minerals like vanadium, however, the number of ASX shares exploring for and producing the element is much narrower.

We'll look at three of those below.

But first…

What is vanadium?

If you recall your periodic table from your school days, vanadium is atomic number 23.

It's a ductile metal that's resistant to corrosion from alkalis, acids and salt water.

Vanadium is primarily used to produce stronger, more heat resistant steel. You'll also find it in nuclear reactors and modern batteries.

Currently China produces almost 60% of the global vanadium supply.

And with the Western world working to secure supplies of crucial materials outside of China, vanadium has been listed as a critical mineral by the Australian government.

So, which ASX shares are digging up vanadium?

The ASX shares cashing in on vanadium

First off, we have the aptly named Australian Vanadium Ltd (ASX: AVL).

The company's main focus is its Australian Vanadium Project, located in Western Australia, which has a globally significant vanadium resource.

AVL has seen some big share price swings over the past 12 months on reports of various successes and setbacks. All up, investors have rewarded the company, with shares up 120% since this time last year.

The small-cap ASX share has a market capitalisation of $157 million.

Who else is focused on vanadium?

Another ASX share involved with vanadium is Neometals Ltd (ASX: NMT).

Among its projects, Neometals is the 100% owner of the Barrambie vanadium-titanium project. The company is also working on vanadium recovery in Europe.

Following a 158% share price surge over the past 12 months, Neometals has a current market cap of $705 million.

Looking into the larger companies, there's also Syrah Resources Ltd (ASX: SYR).

While not the element is its primary focus, Syrah reported its Balama graphite project in Mozambique "contains a significant vanadium by-product resource which presents a potential value-accretive opportunity".

The company added:

Vanadium, a by-product which is liberated during the graphite production process, could potentially be refined into a saleable product via processing of material currently reporting to tailings at Balama.

The Syrah resources share price is up 79% since this time last year.

That gives the ASX share a market cap of $1.2 billion.

You can find also find out which ASX shares are cashing in on lithium and cobalt in more of our 'Mineral Monday' series.

The post Mineral Monday: What you need to know about vanadium and which ASX shares are cashing in on it appeared first on The Motley Fool Australia.

Shares in the vanadium explorer closed yesterday at 4.7 cents and are currently trading for 4.5 cents.

Atop broader weakness in the ASX resources sector today, here's what looks to be impacting the company.

Share purchase plan opens today

The Australian Vanadium share price is in the red after the company reported that its share purchase plan (SPP) is now open.

Eligible shareholders can invest as much as $30,000 in new AVL shares at the offer price of 4.7 cents. That's 17.5% below the Australian Vanadium share price on 17 May, the company's last day of trading before announcing the SPP offer.

The company is looking to raise $7.5 million but said it could raise more if there was sufficient investor appetite. And it may be the idea of unspecified additional share dilution that's seeing the resource explorer trade lower today.

Commenting on the reasoning behind the capital raising, Australian Vanadium chairman Cliff Lawrenson said:

The funds raised under the Placement and SPP will be used to fund ongoing work at the company's Australian Vanadium Project and to develop key downstream markets ahead of finalising debt financing and a Final Investment Decision, and for working capital, including costs.

In a separate announcement this morning, the company reported that its 100% owned subsidiary, VSUN Energy, has signed a memorandum of understanding (MOU) with North Harbour Clean Energy.

The MOU opens the door for VSUN Energy to help develop vanadium redox flow batteries being developed by North Harbour Clean Energy.

Commenting on the agreement, Australian Vanadium managing director Vincent Algar said: "Jointly the companies aim to grow the Australian vanadium energy storage sector and do justice to this Australian invented technology."

Australian Vanadium share price snapshot

The Australian Vanadium share price has come under selling pressure since hitting five-year highs of 9 cents on 1 April.

Despite a significant retrace since those highs, shares remain up 50% year-to-date. That compares to the 7% loss posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

The post What's going on with the Australian Vanadium share price today? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Australian Vanadium Ltd (ASX: AVL)

The Australian Vanadium share price is down 12% to 5 cents. This has been driven by the completion of the vanadium developer's equity raising this morning. Australian Vanadium has raised a total of $20 million from institutional, professional, and sophisticated investors at a 17% discount of 4.7 cents per new share. The proceeds will be used primarily to finance ongoing work at the company's Australian Vanadium Project.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down almost 4% to $5.99. This follows news that the building services company's CEO and COO have been selling shares. According to the release, both executives have sold 1 million shares each, bringing in over $6 million apiece. It is worth noting, though, that they still retain significant shareholdings despite these sales.

Nufarm Ltd (ASX: NUF)

The Nufarm share price is down 5% to $5.78. This may have been driven by a broker note out of Morgans. According to the note, the broker has downgraded the agricultural chemicals company's shares to a hold rating and cut the price target on them to $6.65. Its analysts are expecting a strong result in FY 2022 but then a pullback in earnings in FY 2023.

Unibail-Rodamco-Westfield (ASX: URW)

The Unibail-Rodamco-Westfield share price is down 10% to $4.87. This follows news that the global real estate developer will rebrand three flagship shopping centres in Spain, Sweden and Poland. The centres being rebranded are Parquesur in Madrid, Taby Centrum in Stockholm, and Galeria Mokotow in Warsaw.

The post Why Australian Vanadium, John Lyng, Nufarm, and Unibail-Rodamco-Westfield are dropping appeared first on The Motley Fool Australia.

At the time of writing, the vanadium developer's shares are down 17% to 4.7 cents.

Why is the Australian Vanadium share price sinking?

The catalyst for the weakness in the Australian Vanadium share price on Friday has been the completion of the company's equity raising.

According to the release, the company has received firm commitments from existing and new institutional, professional, and sophisticated investors to raise $20 million before costs.

Australian Vanadium is raising the funds through the issue of approximately 425.5 million new shares at a 17% discount of 4.7 cents per share.

The company will now seek to raise a further $7.5 million via a share purchase plan (SPP). These funds will be raised at the same price as the placement.

Though, given the weakness in the Australian Vanadium share price today, it's unclear how many shareholders will take part given they could just buy shares on-market at the same price.

Why is Australian Vanadium raising funds?

The release explains that the funds raised under the placement and SPP will be used to finance ongoing work at the company's Australian Vanadium Project. Proceeds will also be used to develop key downstream markets ahead of finalising debt financing and a final investment decision.

Australian Vanadium's Managing Director, Vincent Algar, commented:

We are extremely pleased with the overwhelming support we have received for this capital raising. The capital raising saw new institutional and sophisticated investors join the register, as well as receiving strong participation from AVL's existing shareholders.

We are also pleased to provide an opportunity for our valued retail investors to participate in the capital raising through the offer of the SPP. The funds raised through the Placement and the SPP will ensure that the Company remains well funded while we implement the next phases of the development program for the Australian Vanadium Project.

The post Why is the Australian Vanadium share price crashing 17% today? appeared first on The Motley Fool Australia.

Well, as it turns out, that was about as good as it got for Australian Vanadium. Today, the company is trading 3.5% down for the day so far at a share price of 5.5 cents. That means this company has fallen by around 31% over the past month alone. Since its new all-time high of 12 cents a share that we saw on 4 April, the company has now dropped by 50%. Ouch.

Why has the Australian Vanadium share price crashed more than 30% in a month?

So, what's going on with this vanadium company? Well, as we covered last month, what really seemed to set investors onto Australian Vanadium shares was the March announcement that the company would be awarded a $49 million grant from the federal government's Modern Manufacturing Initiative.

As we noted at the time, investors seemed to be flocking to 'green metals' shares such as lithium and cobalt. And vanadium looked set to join the list. Vanadium does indeed have potential uses in next-generation battery technology. Some experts believe vanadium can enable batteries known as 'redox flow batteries', which have the potential to last for more than 20 years, with little loss of charging capacity.

But unfortunately for investors, enthusiasm for green metals and the companies that mine or produce them, has waned dramatically over the past month. Lithium shares that were red hot only weeks ago, such as Pilbara Minerals Ltd (ASX: PLS) and AVZ Minerals Ltd (ASX: AVZ), have seen steep falls in value recently. We've seen this trend extend right across most ASX metals and mining shares for that matter. So it's probably for this reason that Australian Vanadium shares have had such an awful month.

Even so, the Australian Vanadium share price remains up a pleasing 83% in 2022 so far, and up 175% over the past 12 months.

The post Why has the Australian Vanadium share price crashed 31% in a month? appeared first on The Motley Fool Australia.

According to Geoscience Australia, critical minerals are crucial elements for modern technologies, economies and national security.

There are several ASX-listed companies involved in the exploration, mining or production of three critical minerals: vanadium, tungsten, and cobalt.

Let's take a look at what these minerals are used for and which ASX shares are involved.

Vanadium

Vanadium is a silver-grey element used in steel alloys, nuclear reactors and space vehicles. Further, it is seen as a metal that could be used in the cathodes of batteries in electric vehicles (EV).

One vanadium share on the ASX is Australian Vanadium Ltd (ASX: AVL). The AVL share price has surged 181% over the past 12 months, and it's soaring 103% year to date. The company is exploring the Australian Vanadium Project in Western Australia.

Another vanadium explorer is Neometals Ltd (ASX: NMT), an ASX share working on vanadium recovery in Scandinavian countries. The Neometals share price has surged 154% in the past year but is down 10% since the start of 2022.

Tungsten

The critical mineral tungsten is another rare metal that can be used in the production of lithium-ion batteries. Group 6 Metals Ltd (ASX: G6M) is redeveloping a mine to explore tungsten in King Island, Tasmania. The company's share price has surged 40% year to date, although it has fallen 12% over the past 12 months.

ABC TV Four Corners viewers who tuned in to the documentary program this week would have seen Group 6 featured on the show. Chairman Johann Jacobs revealed the company was attracting interest from United States officials. He said he had held three meetings with the US embassy in 12 months, adding:

At this stage, they don't have any financial interest, but they certainly are very keen to see us progress and develop the mine because it's another supply chain… from a friendly nation.

Cobalt

Cobalt Blue Holdings Ltd (ASX: COB) is one ASX share exploring cobalt. The company has seen its shares surge 171% over the past 12 months and 86% year to date. In today's trade, the company's share price jumped nearly 14%.

In April, the company received a $15 million Federal Government grant for the Broken Hill Cobalt Project.

Cobalt is used in alloys, magnets and as a catalyst for the petroleum and chemical industries. The metal is also used in lithium-ion batteries in electric vehicles. Cobalt helps stop cathodes in the batteries from overheating.

Our final ASX share is cobalt explorer Jervois Global Ltd (ASX: JRV), which is exploring the critical mineral in Idaho, United States. Jervois shares have surged 87% in the past year and 27% year to date.

The post 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them) appeared first on The Motley Fool Australia.

Investors seem to be extremely bullish on this market niche right now. Take Pilbara Minerals Ltd (ASX: PLS). It's up close to 30% over the past month. Or AVZ Minerals Ltd (ASX: AVZ), which has given investors a return of more than 52%. But the Australian Vanadium Ltd (ASX: AVL) share price is a standout performer.

Australian Vanadium shares gained an extraordinary 16.67% just today, closing at 10.5 cents a share. But it was less than a month ago that this company was trading at just 4 cents a share. That means the Australian Vanadium share price has rocketed 162.5% in under a month.

So what's behind this eye-watering move? Well, it's hard to say for sure. But some developments have likely pushed investors towards this small-cap vanadium share.

Australian Vanadium share price rockets higher

The first is a general appetite for companies involved in green metals, battery materials and technologies and renewable energy that we have been seeing from investors lately. Vanadium is a metal that has been identified as a potentially game-changing ingredient in a new generation of batteries known as redox flow batteries.

This technology is still emerging. But even so, many experts are excited about its potential future. Redox flow batteries use significant quantities of vanadium. So if this technology takes off, it's not unreasonable to foresee a huge rise in the demand for the metal.

And Australian Vanadium is, of course, building out its capacity to produce this potentially green metal.

But another major development seems to have gotten investors hot under the collar for Australian Vanadium shares. Last month, the company announced that it has been awarded a $49 million grant under the federal government's Modern Manufacturing Initiative (MMI). Australian Vanadium will use the funds to develop its Australian Vanadium Project near Geraldton, Western Australia.

Australian Vanadium is a company with a market capitalisation of just under $300 million. Thus, a grant of $49 million is a significant injection.

In its recent joint announcement with Australia, which we covered last week, the United States government has also singled out vanadium as a critical mineral. This could imply that further government assistance is possible as the US builds out secure supply chains of critical minerals.

All in all, it doesn't get much better than the month the Australian Vanadium share price has just had.

The post How has the Australian Vanadium (ASX:AVL) share price exploded 160% in a month? appeared first on The Motley Fool Australia.

In morning trade, the vanadium developer's shares are up a whopping 23% to 4.3 cents.

Why is the Australian Vanadium share price racing higher?

The catalyst for the rise in the Australian Vanadium share price on Wednesday was news that the company has been awarded a major government grant.

According to the release, the company has been awarded a $49 million grant under the Australian Government's Modern Manufacturing Initiative (MMI) Collaboration Stream. The funds will be put towards the development of the Australian Vanadium Project near Meekatharra and Geraldton, which aims to create an Australian green fuelled vanadium industry.

The release notes that vanadium is on the critical metal list in many countries, including Australia, the United States, Japan and many European countries. The metal is used in critical aerospace and chemical applications, is a key component in high strength and specialty steel products, and has an important and growing use in long duration, safe energy storage applications.

This clearly fits the bill for the $1.3 billion MMI, which forms part of the government's Resources Technology and Critical Minerals Processing Roadmap that aims to develop Australia as a regional resources technology and critical minerals processing hub within 10 years.

'Delighted'

Australian Vanadium's Managing Director, Vincent Algar, revealed that he was delighted with the news.

He commented: "AVL is delighted to have been awarded this grant from the Australian Government. Our project will create hundreds of jobs in Australia and help to build the critical vanadium industry both locally and internationally. We have developed an innovative and collaborative approach to building a fully integrated project, from mine through to processing and end use in the steel and battery markets."

"Our collaborations are allowing us to build a project with unique social and environmental benefits. We look forward to working with our partners to bring the Australian Vanadium Project into production and further develop downstream opportunities for green steel and the vanadium redox flow battery market," Algar concludes.

The post Here's why the Australian Vanadium (ASX:AVL) share price is racing 23% higher appeared first on The Motley Fool Australia.

The vanadium-focused mineral exploration company's shares were as much as 22% lower in earlier trade. They have since recovered slightly but are still down almost 18% in afternoon trade.

Why is the Australian Vanadium share price being smashed?

This morning Australian Vanadium announced the pre-feasibility study (PFS) results and the release of a maiden ore reserve for its 100%-owned Gabanintha vanadium deposit in Western Australia.

According to the release, the results of the PFS build upon the initial base case and indicate a project with a well-defined resource base, robust economics and utilising an industry standard, low-risk method of beneficiation and refining to produce a vanadium pentoxide (V2O5) flake product.

Furthermore, the work has identified a reduction in capital costs and confirmed the low C1 operating costs with further opportunities identified.

Management expects the average C1 operating expenses to be US$4.15/lb V2O5 equivalent, which is competitive with the world's lowest quartile producers.

Given that current V2O5 prices are at US$22/lb and there is expected to be an ongoing supply shortfall until at least 2025, this project could be very profitable based on those costs.

Finally, the study estimates the post-tax NPV (based on an 8% discount rate) to be between US$125 million and US$1.41 billion, depending on the pricing assumption. Management believes this indicates a robust project.

So why the selling?

While this study appears to be very positive and shows a lot of promise for the project, it appears that many investors were hoping for better.

In addition to this, the release explains that its current timeline indicates that production is expected to commence in 2022. This means it will be some time before the company is generating meaningful cash flows.

I think Australian Vanadium is worth keeping a close eye on, but I would sooner buy the shares of mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) instead.

The post Why the Australian Vanadium share price was smashed today appeared first on The Motley Fool Australia.