Velox's Exportable Solid State Hydrogen Project Advancing Toward Commercialisation
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On November 27, 2025, Velox Energy Materials announced the successful completion of "Milestone 2" for its Kotai Hydrogen Project. This project is focused on developing a solid-state method for storing and transporting hydrogen using sodium borohydride.
The key achievements of this milestone, validated at a lab scale, include: - Synthesizing and purifying 10g of sodium borohydride. - Achieving a continuous hydrogen release of 10g per hour. - Demonstrating hydrogen output at pressures up to 1,000 bar, confirming viability for high-pressure delivery.
The completion of this milestone triggers a AUD 1,000,000 payment to the company from the Australian Renewable Energy Agency (ARENA) as part of a larger grant. The next step is Milestone 3, which involves scaling up the process.
The news is materially positive for Velox, primarily because it provides third-party validation of its new core technology and secures crucial non-dilutive funding. For a company in Velox's precarious financial state, this is a significant development.
- Progression and De-risking: After pivoting from vanadium exploration (which resulted in a $2.25M impairment loss in 2024) to hydrogen technology in late 2023, this is the first tangible evidence that the new strategy is progressing. Meeting technical milestones under a government grant program adds credibility to the project.
- Financial Lifeline: As of the last audited financials (Dec 31, 2024), Velox had only CAD 482,360 in cash with a net loss of CAD 3.8 million for the year. The AUD 1 million (~CAD 880,000) grant payment substantially improves the company's short-term cash position and extends its operational runway without resorting to immediate, highly dilutive financing.
- Context and Caution: While positive, the achievement must be viewed with extreme caution. The project is still at an early, lab-scale R&D phase. The challenges and capital required to scale from synthesizing 10 grams to a commercially viable production level are immense. The path from lab to market is long and fraught with risk. The stock is trading near its 52-week low, reflecting deep market skepticism about the company's long-term viability. This news provides a glimmer of hope but does not fundamentally alter the high-risk nature of the investment.
In summary, the news confirms the company is on track with its stated plan and provides a much-needed cash infusion. It makes a material positive difference to the company's short-term outlook but does not eliminate the substantial long-term technical and financial hurdles.
Velox Energy Materials Inc. is a Canadian-listed company that has recently pivoted from exploring vanadium resource properties in Australia to developing hydrogen energy technology.
The company's flagship asset is the Kotai Hydrogen Project, acquired in September 2023. This project aims to commercialize a novel, efficient process for storing and transporting hydrogen in a solid state using sodium borohydride (NaBH4). The technology allows for hydrogen to be stored as a stable, inert powder and released on demand at high pressure. The project is being developed in partnership with Curtin University and is supported by a AUD 5 million grant from the Australian Renewable Energy Agency (ARENA).
Notably, the original vendors of Kotai Energy retain a 5% royalty on future production, and the company's legacy vanadium project is subject to a 2% gross revenue royalty.