Vanadium battery energy storage price trend

What is the global demand for vanadium redox flow batteries in 2031?

According to Guidehouse Insights, global annual deployments of VRFBs are expected to reach approximately 32,8 GWh in 2031. This presents significant growth with a CAGR of 41% across the forecast period. Vanadium pricing depends on global demand for steel and vanadium redox flow batteries.

Is vanadium in a supply deficit?

Vanadium producers have recently benefited from an increase in infrastructure spending. However, the demand for vanadium also continues to increase with other applications, including in the aerospace industry and the production of vanadium redox batteries. Various supply-demand forecasts have vanadium in a supply deficit starting around 2025.

Will vanadium become a prime energy metal?

In the medium-term Wood Mackenzie forecasts that vanadium demand in the steel market will grow at a CAGR of about 3,1% through to 2030, when it is expected to reach approximately 136 000 tonnes by 2030. The VRFB sector has the potential to create an additional large market for vanadium and transform the commodity into a prime energy metal.

Why are Vanadium prices spiking?

While this is 38,1% higher than the previous year, it is marginally lower than long-term historical average vanadium prices. The outbreak of war in Ukraine in February 2022 led to volatility in the vanadium market. This compounded an already tight market and resulted in vanadium prices spiking in March and into early April.

Does vanadium degrade?

First, vanadium doesn’t degrade. “If you put 100 grams of vanadium into your battery and you come back in 100 years, you should be able to recover 100 grams of that vanadium—as long as the battery doesn’t have some sort of a physical leak,” says Brushett.

How much vanadium is produced in the VRFB market?

Currently, it is estimated that the VRFB market only accounts for 3%-5% of vanadium production but the continued shift to renewable energy solutions could trigger a surge in vanadium demand and account for 20% of vanadium consumption by 2030. The majority of all vanadium produced is used as an alloying agent for strengthening steel.