Downer has entered into an agreement with Multicom Resources to assist in developing the Saint Elmo vanadium project near Julia Creek and progress a concept study for the development of vanadium flow batteries.

The agreement outlines Multicom and Downer’s proposed collaboration with the intention of progressing to a mining services agreement at Saint Elmo as well as the provision of design and engineering services.

Downer said these services would support Multicom’s focus on the exploration and development of vanadium assets to satisfy the growing demand for V205 in steel manufacturing and the emerging energy storage market.

“Multicom is pleased to be partnering with Downer,” Multicom chief executive officer Shaun McCarthy said.

“The partnership will allow Multicom to leverage Downer’s strong relationships and technical capabilities across industries such manufacturing and mining.”

Since acquiring the Saint Elmo tenement in early 2017, Multicom has lodged the mining lease application and is well-advanced on environmental and pre-feasibility studies.

Vanadium increases the tensile strength of steel and can be used in industrial-scale batteries, which help to even out daily peaks and troughs from renewables like solar and wind energy.