Australian Vanadium (ASX:AVL) and Vsun Energy, its wholly-owned unit, submitted an expression of interest as part of the first stage of Western Australia's proposed Kalgoorlie Vanadium Battery Energy Storage System (VBESS), according to a Monday Australian bourse filing.

The Western Australia government seeks 500 megawatt-hour vanadium flow battery solution under a build-own-operate model, and it committed AU$150 million for the development of the project, the filing said. The government indicated that the first stage submissions are expected to be assessed this month and the second stage next month.

The company said its Australian vanadium project in Western Australia provides an opportunity for high-purity vanadium oxide production locally.

Australian Vanadium's shares fell 6% in recent trading on Monday.