A new WA Government announcement (4 February 2026) provides additional clarity for vanadium developers and the emerging vanadium battery supply chain in Western Australia — with the stated aim of supporting regional jobs and helping stimulate new downstream industries.

What was announced

The Government announced that a 2.5% royalty rate will apply to vanadium products, describing the change as an incentive for vanadium production in WA and as support for the State’s emerging vanadium battery industry.

The statement also references the existing 0% royalty rate for midstream production of vanadium electrolyte for the manufacturing of vanadium batteries, positioning electrolyte production as a key part of the broader industry pathway.

Why this matters for long-duration energy storage

Vanadium flow batteries are increasingly used as a technology suited to long-duration energy storage, particularly as power systems add more renewables and seek additional dispatchable capacity and reliability. The Government’s statement explicitly links vanadium battery technology to supporting long-duration storage in WA as coal-fired stations retire and renewables increase.

From an industry perspective, policy settings that improve certainty for upstream and midstream investment can help accelerate the build-out of the supply chain required to deliver bankable projects — including the electrolyte pathway that underpins vanadium flow battery deployment.

Kalgoorlie: a focal point for local industry development

A central feature of the announcement is the Government’s plan to deliver a WA-made, utility-scale vanadium flow battery in Kalgoorlie — described as 50MW with 10 hours duration, creating 150 jobs during construction, and targeted to be operational by 2029.

The statement also notes an intention to work with the private sector to develop local vanadium electrolyte production and battery assembly in Kalgoorlie, with potential flow-on opportunities for downstream processing and exports.

Highlight: comments from Kalgoorlie MLA Ali Kent

Ali Kent, MLA for Kalgoorlie, framed the announcement as supportive of both upstream production and downstream opportunities locally — particularly in electrolyte production and battery assembly.

“This royalty relief is a win for aspiring vanadium producers and companies eyeing opportunities in electrolyte production and battery assembly in Kalgoorlie.”

Kent also expressed optimism about progress on the battery project and the jobs and economic opportunities it is expected to generate for Kalgoorlie.

What it could mean for industry and local content

The statement includes a clear call for local participation, noting that expressions of interest remain open and that the Government wants local businesses involved, with local content to be practical and achievable.

For WA businesses, that combination — clearer royalty settings, explicit support for electrolyte and assembly, and an open EOI process — is a meaningful signal. It suggests the opportunity is not limited to a single project, but could help catalyse broader capability across:

• electrolyte production and supply

• battery assembly and integration

• project delivery, electrical works, civil works, commissioning

• operations and maintenance capability in-region

• supporting services and export pathways

AFB’s view

At Australian Flow Batteries, we see policy moves like this as constructive steps toward building a durable, WA-based vanadium ecosystem — one that supports regional jobs while strengthening energy reliability through long-duration storage solutions.

If you’re a local supplier, fabricator, engineering provider, or services company looking at how you could participate in the emerging vanadium battery supply chain — now is a good time to map where you fit, and what capability you can bring to WA.

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Source: WA Government media statement, “Vanadium royalty relief a win for regional jobs, emerging industries” (4 February 2026).