Vanadium Electrolyte Market to Cross $526 million Revenue by 2030

Vanadium Electrolyte Market Overview

“The global vanadium electrolyte market is expected to grow rapidly at a CAGR consequently, it will grow from its existing size of 9.75% from $213.8 million in 2023 to $526 million by 2030.”

The 'fuel' for long-term energy storage: vanadium electrolyte

Vanadium redox flow batteries (VRFBs) are stationary, long-term energy storage systems used worldwide to store renewable energy generated for several hours.

VRFBs, designed with a single vanadium element in a vanadium electrolyte solution, are sleek and chemically simple, making their availability crucial for the battery sector's expansion.

Vanadium, a transition metal, can exhibit various oxidation states when dissolved in water. A vanadium redox battery (VRB) is a type of battery that utilizes vanadium as an electrolyte.

Innovation in vanadium electrolyte production techniques and recycling technologies are expected to enhance the sustainability and cost-effectiveness of vanadium redox flow batteries, thereby fueling market expansion by ensuring a steady supply and reducing environmental impact in battery technology.

• In 2023, high-purity vanadium electrolytes will account for 86.9% of total product sales.
• Australia, the United States, South Africa, China, and the United Kingdom are the world's leading manufacturers of vanadium electrolytes.
• In 2023, vanadium electrolyte consumption in energy storage systems will account for 83.1% of the market.

What this means in terms of meeting VRFB end-market demand?

The market for vanadium electrolyte values varies based on the number of litres of electrolyte and the amount of vanadium contained. One MWh of stored energy is equivalent to 68,000 litres of vanadium electrolyte or 9.89 tonnes of vanadium pentoxide, depending on the energy source.

Different VRFB manufacturers specify components in the electrolyte, with molarity ranging from 1.6 to 1.8 molar. Vanadium electrolyte producers collaborate with VRFB producers to ensure suitable electrolyte supply, with some producers demanding stricter standards.

Three primary vanadium mines operate outside China, one by Largo Resources in Brazil and the other two by Bushveld Minerals and Glencore in South Africa. However, China and Russia currently produce 75% of the world's vanadium, not from primary production but as a by-product in steel production.

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Market Dynamics

Growth Factors

The demand for efficient energy storage solutions is on the rise

Vanadium electrolytes are crucial in energy storage systems, particularly in vanadium redox flow batteries (VRFBs). As countries strive to generate renewable energy, the need for reliable storage systems has grown. VRFBs powered by vanadium electrolytes efficiently store excess energy from renewable sources, reducing the intermittent nature of energy generation from wind and solar.

The vanadium electrolyte market is poised for long-term growth due to its critical role in addressing the growing need for energy storage solutions, as it provides a steady backup power supply, thereby enhancing grid stability and promoting the integration of renewable energy.

Use of vanadium electrodes in renewable energy generation to ensure grid stability

Vanadium electrolytes are crucial for power grid stability in the transition to clean and renewable energy sources like wind and solar, as they store extra energy for future use.

Vanadium electrolytes, particularly those in vanadium redox flow batteries (VRFBs), offer a reliable and scalable energy storage solution for grid stability. They help stabilize renewable energy sources, aligning with sustainable energy goals and emphasizing their importance in the clean energy landscape. This collaboration improves the market picture for vanadium electrolytes.

Vanadium electrolytes are being recognized as crucial for a sustainable and reliable energy future, leading to their adoption and expansion in the developing renewable energy environment.

Challenges

The supply chain is vulnerable due to the limited availability of vanadium.

The scarcity of vanadium, a crucial component of vanadium electrolytes, due to its rarity and limited availability in specific geological formations, can lead to supply chain weaknesses, price volatility, and market instability.

Insufficient vanadium supply can lead to higher product prices, potentially dissuading market participants and jeopardizing the viability of vanadium electrolyte-based energy storage systems. Supply chain interruptions, geopolitical circumstances, and mining challenges can exacerbate these issues. To ensure a secure and sustainable supply chain, diversification of vanadium sources and investments in recycling technologies are crucial.

Market Segment Analysis

Use of high-purity vanadium electrodes in batteries to improve their durability and performance.

High-purity vanadium electrolytes reduce degradation of battery electrodes and components over time, extending the life and durability of vanadium redox flow batteries. This maintains performance across repeated charge-discharge cycles, ensuring the battery's longevity and longevity.

High-purity vanadium electrolytes undergo purification procedures to remove impurities and contaminants, reducing manufacturing costs and enhancing battery performance and longevity. This makes them economically attractive due to reduced maintenance and replacement costs.

The demand for long-duration and high-capacity energy storage is on the rise.

VRFBs are renowned for their scalability and long-term storage capacity, making them ideal for applications requiring consistent power supply. As demand for longer-lasting and higher-capacity energy storage systems increases, so does the demand for vanadium electrolytes.

VRFBs are vital for grid stabilization and auxiliary services, aiding in frequency regulation, voltage fluctuation mitigation, and backup power during disruptions. Vanadium electrolytes ensure smooth and reliable operation, making them increasingly popular.

Competitive Landscape of the Vanadium Electrolyte Market

• Australian Vanadium Limited (AVL)
• Oxkem Ltd.
• Pangang Group Vanadium Titanium & Resources Co.
• S. Vanadium LLC
• Vecco Group
• Vanadium Corp.

Recent Developments in Vanadium Electrolyte Market

LE SYSTEM announced the launch of its new vanadium electrolyte, which is said to be more stable and efficient than previous generations. The electrolyte is designed for use in flow vanadium batteries, which are a type of energy storage system that is used for large-scale applications such as grid balancing and renewable energy integration.

US Vanadium announced the launch of its new vanadium electrolyte, which is said to be the first of its kind to be produced in the United States. The electrolyte is made from domestically-sourced vanadium, which the company says will help to reduce the environmental impact of vanadium flow batteries.

Sumitomo Electric Industries announced the launch of its new vanadium electrolyte, which is said to be more durable and have a longer lifespan than previous generations. The electrolyte is designed for use in a variety of applications, including flow vanadium batteries, static vanadium batteries, and vanadium redox flow capacitors.

Acquisition and collaboration

In 2022, VRB Energy acquired Nanotech Energy, a developer of vanadium redox flow battery (VRFB) technology. This acquisition gave VRB Energy access to Nanotech Energy's proprietary vanadium electrolyte technology, which is said to be more stable and efficient than traditional VRFB electrolytes.

In 2021, Sumitomo Electric Industries acquired Fluidic Energy, a developer of VRFB technology. This acquisition gave Sumitomo Electric Industries access to Fluidic Energy's vanadium electrolyte technology, which is said to be more scalable and cost-effective than traditional VRFB electrolytes.

In 2020, EnerVault partnered with Johnson Matthey to develop vanadium electrolyte technology for VRFBs. This partnership is expected to help EnerVault develop more efficient and cost-effective VRFBs.

Regional Insights

Why is the use of vanadium electrolytes so prevalent in China?

Increasing adoption of VRFBs as safer alternatives to lithium batteries

Vanadium redox flow batteries (VRFBs) are being considered as a safer alternative to lithium batteries due to their ability to exist in four oxidation states. China's 9.5 million tons vanadium reserves enable self-sufficiency in production, reducing its dependency on imported lithium raw materials.

The country is exploring reliable and cost-effective energy storage technologies like VRFBs, supported by government initiatives, to boost mass energy storage development and reduce the need for vanadium electrolytes.

• China recently launched several vanadium projects, including the world's largest vanadium redox flow power storage project in Dalian. This 100 MW or 400 MWh station helps stabilize renewable energy output and has plans to expand to 200 MW or 800 MWh. Forecasts indicate that vanadium battery storage capacity will double in 2023 from 0.73 GW this year, reaching 24 GW by 2030.

Why is the vanadium electrolyte market thriving in the United States?

Significant increase in renewable energy storage installations, primarily driven by government incentives

The US's growing renewable energy mix, particularly solar and wind power, necessitates efficient energy storage technologies to combat intermittency and ensure reliable electricity supply. Vanadium redox flow batteries, utilizing vanadium electrolytes, offer a scalable and feasible solution for long-duration energy storage.

The US government has implemented various rules and incentives, including investment tax credits and grants, to promote energy storage technology, thereby increasing the use of vanadium redox flow batteries and thereby increasing the demand for vanadium electrolytes.

Segments Covered in the Vanadium Electrolyte Market

Vanadium Electrolyte Market By Purity Level

• High Purity
• Standard Purity

Vanadium Electrolyte Market By End-use Application

• Energy Storage Systems
• Industrial & Commercial

Vanadium Electrolyte Market By Region

• North America
• Latin America
• East Asia
• South Asia & Pacific
• Western Europe
• Eastern Europe
• Middle East & Africa

Frequently Asked Questions:

How big is the vanadium electrolyte market in 2023?

The global vanadium electrolyte market has reached a valuation of US$213.8 million in 2023.

Which purity-level vanadium electrolyte accounts for a leading market share?

High-purity electrolytes are expected to lead global market growth, accounting for a market share of 85.8% in 2023.

Which application accounts for the extensive utilization of vanadium electrolytes?

Use of vanadium electrolytes in energy storage systems accounts for a market share of 82.58% in 2023.

What is the future demand for vanadium electrolytes?

The market is set to reach US$ 526 million by the end of 2030.

1. Market – Executive Summary

2. Market Overview

    2.1. Market Definition and Introduction

    2.2. Market Taxonomy/ Research Scope

3. Market Background and Foundation Data

    3.1. Global Vanadium Market Outlook

    3.2. Evolution of in VRFSs (Vanadium Redox Flow Batteries)

    3.3. Contemporary Landscape: Vanadium-based Electrolyte Market

    3.4. Vanadium Production from Top Three Global Vanadium Producers in Q3 2021

    3.5. Global Regulations Governing Vanadium

    3.6. Global Vanadium Electrolyte: Apparent Production & Consumption Analysis

        3.6.1. Production Capacity (Mn Liters)

            3.6.1.1. By Key Regions

            3.6.1.2. By Key Companies

        3.6.2. Consumption Statistics

        3.6.3. Apparent Trade Analysis

    3.7. Market Opportunity Assessment

        3.7.1. Total Available Market (US$ Million)

        3.7.2. Serviceable Addressable Market (US$ Million)

        3.7.3. Serviceable Obtainable Market (US$ Million)

    3.8. Market Dynamics

        3.8.1. Drivers

        3.8.2. Restraints

        3.8.3. Opportunities

        3.8.4. Trends

    3.9. Forecast and Factors – Relevance and Impact

    3.10. PESTLE Analysis

    3.11. Investment Feasibility Analysis

    3.12. Industry Value and Supply Chain Analysis

        3.12.1. Value Added at Each Node of Supply Chain

        3.12.2. Gross Profitability Margins (at Every Level)

        3.12.3. List of Key Participants

            3.12.3.1. Operating Margins (at each node of value chain)

            3.12.3.2. Key Raw Material Manufacturers

            3.12.3.3. Key Manufacturers

            3.12.3.4. Key Distributor/Retailers

            3.12.3.5. Key End-use Industry

4. Global Demand (Mn Liters) Analysis and Forecast

    4.1. Historical Market Volume (Mn Liters) Analysis

    4.2. Current and Future Market Volume (Mn Liters) Projections

5. Global Market – Pricing Analysis

    5.1. Form and Country–Level Pricing Analysis

    5.2. Global Average Pricing Analysis Benchmark

    5.3. Factors Influencing Pricing

6. Global Market Value (US$ Million) Analysis and Forecast

    6.1. Historical Market Value (US$ Million) Analysis

    6.2. Current and Future Market Value (US$ Million) Projections

        6.2.1. Y–o–Y Growth Trend Analysis

        6.2.2. Absolute $ Opportunity Analysis

7. Global Market Analysis and Forecast, By Purity Level

    7.1. Introduction / Key Findings

    7.2. Historical Market Size (US$ Million) and Volume (Mn Liters) Analysis By Purity Level

    7.3. Current and Future Market Size (US$ Million) Analysis and Volume (Mn Liters) Forecast By Purity Level

        7.3.1. High Purity

        7.3.2. Standard Purity

    7.4. Market Attractiveness Analysis By Purity Level

8. Global Market Analysis and Forecast, By End-use Application

    8.1. Introduction / Key Findings

    8.2. Historical Market Size (US$ Million) and Volume (Mn Liters) Analysis By End-use Application

    8.3. Current and Future Market Size (US$ Million) Analysis and Volume (Mn Liters) Forecast By End-use Application

        8.3.1. Energy Storage Systems

        8.3.2. Industrial and Commercial

    8.4. Market Attractiveness Analysis By End-use Application

9. Global Market Analysis and Forecast, By Region

    9.1. Introduction

    9.2. Historical Market Size (US$ Million) and Volume (Mn Liters) Analysis By Region

    9.3. Current Market Size (US$ Million) Analysis and Volume (Mn Liters) Forecast By Region

        9.3.1. North America

        9.3.2. Latin America

        9.3.3. East Asia

        9.3.4. South Asia & Pacific

        9.3.5. Western Europe

        9.3.6. Eastern Europe

        9.3.7. Middle East & Africa

    9.4. Market Attractiveness Analysis By Region

10. North America Market Analysis and Forecast

    10.1. Introduction / Key Findings

    10.2. Pricing Analysis

    10.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    10.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        10.4.1. By Country

            10.4.1.1. U.S.

            10.4.1.2. Canada

            10.4.1.3. Mexico

        10.4.2. By Purity Level

        10.4.3. By End-use Application

    10.5. Market Attractiveness Analysis

        10.5.1. By Country

        10.5.2. By Purity Level

        10.5.3. By End-use Application

11. Latin America Market Analysis and Forecast

    11.1. Introduction / Key Findings

    11.2. Pricing Analysis

    11.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    11.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        11.4.1. By Country

            11.4.1.1. Brazil

            11.4.1.2. Chile

            11.4.1.3. Argentina

            11.4.1.4. Rest of Latin America

        11.4.2. By Purity Level

        11.4.3. By End-use Application

    11.5. Market Attractiveness Analysis

        11.5.1. By Country

        11.5.2. By Purity Level

        11.5.3. By End-use Application

12. East Asia Market Analysis and Forecast

    12.1. Introduction / Key Findings

    12.2. Pricing Analysis

    12.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    12.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        12.4.1. By Country

            12.4.1.1. China

            12.4.1.2. Japan

            12.4.1.3. South Korea

        12.4.2. By Purity Level

        12.4.3. By End-use Application

    12.5. Market Attractiveness Analysis

        12.5.1. By Country

        12.5.2. By Purity Level

        12.5.3. By End-use Application

13. South Asia & Pacific Market Analysis and Forecast

    13.1. Introduction / Key Findings

    13.2. Pricing Analysis

    13.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    13.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        13.4.1. By Country

            13.4.1.1. India

            13.4.1.2. ASEAN

            13.4.1.3. Australia & New Zealand

            13.4.1.4. Rest of SAP

        13.4.2. By Purity Level

        13.4.3. By End-use Application

    13.5. Market Attractiveness Analysis

        13.5.1. By Country

        13.5.2. By Purity Level

        13.5.3. By End-use Application

14. Western Europe Market Analysis and Forecast

    14.1. Introduction / Key Findings

    14.2. Pricing Analysis

    14.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    14.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        14.4.1. By Country

            14.4.1.1. Germany

            14.4.1.2. France

            14.4.1.3. Italy

            14.4.1.4. Spain

            14.4.1.5. U.K.

            14.4.1.6. BENELUX

            14.4.1.7. Russia

            14.4.1.8. Rest of Western Europe

        14.4.2. By Purity Level

        14.4.3. By End-use Application

    14.5. Market Attractiveness Analysis

        14.5.1. By Country

        14.5.2. By Purity Level

        14.5.3. By End-use Application

15. Eastern Europe Market Analysis and Forecast

    15.1. Introduction / Key Findings

    15.2. Pricing Analysis

    15.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    15.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        15.4.1. By Country

            15.4.1.1. Russia

            15.4.1.2. Hungary

            15.4.1.3. Poland

            15.4.1.4. Balkan & Baltics

            15.4.1.5. Rest of Eastern Europe

        15.4.2. By Purity Level

        15.4.3. By End-use Application

    15.5. Market Attractiveness Analysis

        15.5.1. By Country

        15.5.2. By Purity Level

        15.5.3. By End-use Application

16. Middle East & Africa Market Analysis and Forecast

    16.1. Introduction / Key Findings

    16.2. Pricing Analysis

    16.3. Historical Market Size (US$ Million) and Volume (Mn Liters) Trend Analysis By Market Taxonomy

    16.4. Market Size (US$ Million) and Volume (Mn Liters) Forecast By Market Taxonomy

        16.4.1. By Country

            16.4.1.1. KSA

            16.4.1.2. Other GCC

            16.4.1.3. Turkiye

            16.4.1.4. South Africa

            16.4.1.5. Other African Union

            16.4.1.6. Rest of MEA

        16.4.2. By Purity Level

        16.4.3. By End-use Application

    16.5. Market Attractiveness Analysis

        16.5.1. By Country

        16.5.2. By Purity Level

        16.5.3. By End-use Application

17. Market Structure Analysis

    18.1. Market Analysis by Tier of Companies

    18.2. Market Concentration of Players

    18.3. Market Share Analysis of Top Players

    18.4. Market Presence Analysis

19. Market Competition Analysis

    19.1. Competition Dashboard

    19.2. Competition Benchmarking of Products

    19.3. Competition Deep Dive:

        19.3.1. Australian Vanadium Limited (AVL)

        19.3.2. Oxkem Ltd.

        19.3.3. Pangang Group Vanadium Titanium & Resources Co.

        19.3.4. U.S. Vanadium LLC

        19.3.5. Vecco Group

        19.3.6. Vanadium Corp.

        19.3.7. Other Players

20. Assumptions & Acronyms Used

 

21. Research Methodology

Research Methodology