Australian Vanadium (ASX:AVL) signed a nonbinding memorandum of understanding with Tyfast Energy, a US-based advanced battery technology company, to evaluate and qualify its planned Australian vanadium oxide products for use in Tyfast's lithium vanadium oxide anode technology and pursue a potential future offtake relationship, according to a Thursday Australian bourse filing.

The filing said Tyfast is developing LVO-based lithium-ion batteries that combine ultra-fast charging, long cycle life, broad-temperature performance and high energy density for mining, trucking, construction and defense applications.

The company added that the collaboration has potential to support increased Australian participation in the supply chain for heavy-duty batteries, and the company's broader strategy to develop diversified markets for vanadium across vanadium flow batteries and lithium-ion chemistries.

The company's shares rose past 2% in recent Thursday trade.