All-Vanadium Redox Flow Batteries Emerging as a New Trend

With continued emphasis on carbon neutrality, low-carbon and environmental protection have become a social consensus. In this context, the energy storage industry is developing rapidly. Vanadium flow batteries attract attention for their safety, reliability and very long service life; they have become a new opportunity in energy storage. Many companies are deploying along the related supply chain, and some listed companies are actively entering the field.

1. Multiple listed companies are entering the vanadium battery supply chain

Vanadium flow batteries are a commercially mature redox flow battery using circulating vanadium electrolyte. They offer high stability, long cycle life, and are well suited for integrating renewable generation into the grid. They scale well for long-duration storage (over 8 hours) and apply to grid storage, remote power supply, UPS systems and similar fields.

Company representatives said the firm has resource advantages such as vanadium and dilute sulfuric acid, while partners hold core industry technologies; the parties plan to establish joint ventures focused on all-vanadium flow battery energy storage systems. Other projects will cover vanadium electrolyte production, resource exploration and downstream operations.

Some steel and mining companies announced strategic cooperation and investment in vanadium electrolyte plants and plan to expand industry capacity. Subsequent steps include coordinating production of vanadium battery storage equipment to match electrolyte output.

Major equipment and energy groups stated they are independently developing vanadium battery products and have developed several representative products for kW-to-MW containerized all-vanadium flow battery systems. Comprehensive energy projects including vanadium storage are under preliminary development. Battery material research institutes are advancing vanadium battery technology reserves for possible industrialization depending on market developments.

In addition, several firms are pursuing vanadium resource consolidation and high-purity vanadium smelting projects to support the full vanadium flow battery ecosystem. Investor communications show a range of business layouts involving the vanadium battery chain.

2. Broad prospects — rapidly growing installed capacity

Recent policy guidance has opened additional space for vanadium battery applications. Regulatory draft suggestions recommend that certain large electrochemical storage projects avoid using ternary lithium or sodium-sulfur batteries, creating room for alternative chemistries.

Experts point out that vanadium batteries are an important component of large-scale electrochemical storage, able to supplement grid storage where pumped hydro is not available. Chemical storage is a good complement to distributed energy networks.

This year a national demonstration project for flow battery storage completed peak commissioning and is scheduled for commercial operation, marking a step toward industrialization of flow storage technology in China.

Research analysts note China holds abundant vanadium resources, supporting future industry growth. As large-scale vanadium projects progress, installed capacity for all-vanadium flow batteries is expected to expand rapidly.

Industry forecasts estimate significant new electrochemical storage additions by 2025, with vanadium flow batteries representing an important share of long-duration storage deployments.

3. Industry scale and cost challenges remain

The all-vanadium flow battery industry is transitioning from import reliance to domestic scaling. High technical barriers remain; companies with accumulated technology and capital advantages will maintain long-term competitiveness. Raw material quality and price are core constraints on production capacity; leaders with scale and R&D strength stand to benefit.

Analysts note high initial capital cost is a major drawback of vanadium batteries — often more than double that of lithium-ion systems. Project-level cost estimates vary; with technological progress the industry is moving from demonstration toward commercialization and costs are expected to decline over time.

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