Will vanadium flow battery demand squeeze underlying supply fundamentals?

Instead, it is new demand from the vanadium flow battery market that is expected to squeeze the underlying supply fundamentals.

Is vanadium redox chemistry a good choice for a battery?

While the battery architecture can host many different redox chemistries, the vanadium RFB (VRFB) represents the current state-of-the-art due to its favorable combination of performance and longevity. However, the relatively high and volatile price of vanadium has hindered VRFB financing and deployment opportunities.

How can we reduce the cost of a vanadium battery?

One method to reduce the burden of the vanadium price does exist via a new market of electrolyte leasing, where a third-party company leases the vanadium – usually in the form of VRFB electrolyte – to a battery vendor or end-user.

Which country has the highest vanadium reserves in the world?

Australia has the highest vanadium reserves in the world, coming in at 8.5 million MT as of 2024, although it should be noted that only 3 million MT are JORC compliant. Russia is in second place with 5 million MT of vanadium reserves, while China is next in line with vanadium reserves of 4.1 million.

How does a vanadium lease work?

In some schemes, a portion of the financial burden of leasing is shifted from the lessor to third-party investors who can buy and trade vanadium – akin to markets for other physical holdings, like gold – though it is held and maintained by the lessor, who simultaneously rents it out as electrolyte to VRFB customers .

Will new rebar standards increase vanadium consumption?

Between 2019 and 2023, total apparent consumption in the US grew by more than 40%, from under 10,000 metric tons to over 14,000. In September 2024, China introduced new rebar standards that are expected to boost demand high-quality vanadium, potentially increasing vanadium nitrogen consumption by an estimated 15%.