Will flow battery suppliers compete with metal alloy production to secure vanadium supply?

Traditionally, much of the global vanadium supply has been used to strengthen metal alloys such as steel. Because this vanadium application is still the leading driver for its production, it’s possible that flow battery suppliers will also have to compete with metal alloy production to secure vanadium supply.

Why are flow batteries accelerating in deployment capacity?

However, as demand for long-duration storage capability grows, flow batteries and especially VRFBs are poised to accelerate in deployment capacity. This is important not only to build confidence in the commercial performance of VRFBs but also to achieve economies of scale and become more cost-effective.

Why are vanadium batteries so expensive?

Vanadium makes up a significantly higher percentage of the overall system cost compared with any single metal in other battery technologies and in addition to large fluctuations in price historically, its supply chain is less developed and can be more constrained than that of materials used in other battery technologies.

Why do flow battery developers need a longer duration system?

Flow battery developers must balance meeting current market needs while trying to develop longer duration systems because most of their income will come from the shorter discharge durations. Currently, adding additional energy capacity just adds to the cost of the system.

Why are flow batteries flexible and expandable?

Flow batteries are naturally flexible and expandable by design because they can be designed with decoupled power output (determined by the size of the power stack) and energy capacity (determined by the volume of liquid electrolyte) with long discharge durations.

How long do flow batteries last?

Valuation of Long-Duration Storage: Flow batteries are ideally suited for longer duration (8+ hours) applications; however, existing wholesale electricity market rules assign minimal incremental value to longer durations.