Is vanadium a sustainable solution?

US Vanadium can recycle spent electrolyte from VRFBs at a 97% vanadium recovery rate. This makes the VRFB a truly sustainable solution – the vanadium resource is only being borrowed from future generations, not consumed at its expense. One of the main costs affecting vanadium electrolyte is the price of moving it.

What are the economics of vanadium flow batteries?

When it comes to the economics of vanadium flow batteries, the dynamics of supply and demand for vanadium, the silvery-grey transition metal which when dissolved forms the electrolyte and therefore the key component of the battery, have long been the key talking point.

Why is vanadium electrolyte so expensive?

One of the main costs affecting vanadium electrolyte is the price of moving it. Essentially when you transport the electrolyte you are moving acid and water. To reduce the cost of the battery, manufacturing the electrolyte close to the installation makes a lot of sense.

Why should you lease a vanadium battery?

Because vanadium electrolyte doesn’t degrade, it is an appropriate commodity for leasing. The customer then has an operating expense rather than a capital expense. This also provides comfort to the customer as at the end of the battery’s life the electrolyte belongs to someone else who will then be responsible for retrieving and repurposing it.

Where does vanadium come from?

However, 75% of the world’s vanadium is currently produced by China and Russia, not from primary production i.e., mining and extraction of vanadium from the ground, but as a by-product in the production of steel.

Who makes vanadium electrolyte?

USV has an agreement with Europe-headquartered VRFB manufacturer CellCube to supply up to 3 million litres of that electrolyte. In the UK, Oxkem is another electrolyte supplier. It has the capacity to manufacture in excess of 3 million litres per year. Global supply of vanadium electrolyte is however currently very tight.