2024 China vanadium flow battery industry status and trend analysis

Among many energy storage technologies, vanadium flow batteries have gradually become the focus of the industry because of their high safety, long life and battery performance. This paper will deeply analyze the prospects, market policy environment, industrial chain structure and development trend of all-vanadium flow batteries in long-term energy storage technology, and discuss its current situation and future development potential in the Chinese market. 

Check Top 10 vanadium battery companies for more details.

Prospects of vanadium flow battery in long-term energy storage technology

Vanadium flow battery is a kind of REDOX battery with vanadium as the active substance circulating in liquid state. The electrical energy is stored as chemical energy in sulfuric acid electrolyte of different valence vanadium ions.

The electrolytic hydraulic pressure is put into the battery through an external pump. Under the action of mechanical power, it circulates in different liquid storage tanks and closed circuits of half batteries. The electrolyte solution flows parallel to the electrode surface and has an electrochemical reaction, collecting and conducting current through the double electrode plate, so that the chemical energy stored in the solution is converted into electrical energy.

All-vanadium flow batteries are suitable for large-scale, long-term energy storage scenarios. The vanadium flow battery capacity and output power are relatively independent, the battery capacity depends on the volume of vanadium electrolyte and electrolyte concentration, and the output power depends on the size of the stack. When charging and discharging, only vanadium valence state changes, no phase changes, can be deeply discharged, and the battery life is long.

Non-toxic by-product generation, environmentally friendly, high safety, high energy efficiency; When the system is in the off mode, the electrolyte in the tank does not self-discharge. Hot standby state response speed is fast, can achieve instant charging; After the accidental miscibility of vanadium electrolyte solution, it is easy to recover and regenerate, and the problem of cross influence of different ions is avoided compared with other flow batteries such as Zn-Br and Fe-Cr.

In terms of long-term energy storage technology, pumped storage, as the most mature and reliable energy storage technology, is the key form of energy storage investment in China. The main limitation of pumped energy storage is that the construction site selection requirements of the project are high and the construction cycle is long.

Compressed air energy storage is also a mature technology, but the energy conversion efficiency of the system is low and the project location is limited. Compared with these two energy storage technologies, the energy storage limit of vanadium flow battery is lower than pumped storage, but it has the advantages of high system safety, short project construction cycle, flexible location, etc., and with the progress of technology, the economic advantages of vanadium flow battery will gradually strengthen, and it is expected to become one of the important technical routes for large-scale long-term energy storage in the future.

Analysis of vanadium flow battery market policy environment in China

With the rapid development of renewable energy, the problem of new energy consumption is increasingly concerned by the market. To solve this problem, China is vigorously promoting the development of new energy storage industries, with a special focus on how to optimize and balance the relationship between energy supply and demand. China has further clarified the key directions for the research of new energy storage core technology and equipment.

Among them, the flow battery, as one of the key core technologies, has been included in the focus of research. The plan points out that research on key core technologies, equipment and integrated optimization design such as sodium-ion batteries, new lithium-ion batteries(solid state batteries vs lithium ion), lead-carbon batteries, and flow batteries should be carried out to promote the continuous innovation and progress of new energy storage battery technologies.

By 2025, new energy storage is expected to enter the stage of large-scale development from the initial stage of commercialization, with large-scale commercial application conditions. With China's strong support for the development of new energy storage industry, the all-vanadium flow battery industry has also ushered in unprecedented development opportunities.

All vanadium flow battery industry chain

As the cornerstone of power security, energy storage has become the core issue of current power reform. With the transformation of the energy structure and the deepening of the power market, the autonomy and self-control of energy storage technology and production capacity in the future will become the key to promoting the sustainable and healthy development of the entire energy storage industry. Among many energy storage technologies, vanadium flow batteries have gradually become the focus of the industry with their unique advantages. Its industrial chain can be clearly divided into three parts: upstream raw material supply, midstream battery manufacturing and system integration, and downstream application and market development.

The upstream link mainly involves the mining and smelting of vanadium resources. As a key raw material for all-vanadium flow batteries, the stable supply of vanadium is crucial to the healthy development of the industrial chain. Therefore, strengthening the exploration, mining and smelting technology research and development of vanadium resources to ensure the autonomy and control of raw materials is an important task of the upstream link.

The middle stage focuses on the design and manufacture of all-vanadium flow battery energy storage systems. This process includes the development and production of power units (stacks) and energy units (electrolytes). The downstream segment is mainly responsible for the development and operation of energy storage projects. With the gradual maturity and commercialization of all-vanadium flow battery energy storage technology, its application scenarios in power systems are becoming more and more extensive.

Current operation status of the vanadium flow battery industry in China

China has an earlier layout in the field of vanadium flow batteries, although China's vanadium flow battery industry has not yet achieved large-scale commercial application, but with complete technology and 100% independent intellectual property rights and other advantages, the market size is growing rapidly. At present, China has made remarkable progress in the field of all-vanadium flow batteries and occupies an important position on a global scale. According to statistics, by the end of 2022, China accounted for more than half of the 232 vanadium flow battery projects implemented globally, and the total installed capacity (including under construction) reached 657.8MW/2795.6MWh.

With the rapid development of renewable energy and the increase in demand for grid peak regulation, the installed scale of flow batteries in China has continued to grow, providing a solid support for the construction of a new power system. Data show that from 2018 to 2022, the scale of newly put into operation in China's flow battery energy storage projects has achieved steady growth.

Among them, the scale of new flow battery energy storage projects put into operation in China in 2022 reached 112.1MW/458.2MWh, compared with 2021, an astonishing 338% and 390% year-on-year growth. At the same time, the proportion of new flow battery installed capacity has also increased from 1% in 2021 to 1.5%, further consolidating China's leading position in the field of all-vanadium flow batteries.

Development trends of the vanadium flow battery industry in China

With the transformation of the global energy structure and the rapid development of renewable energy, the demand for new energy storage technologies continues to increase. China's policies have given clear support to the development of new energy storage technologies, emphasizing the direction of technological innovation with high safety, large capacity, low cost and long life, and focusing on overcoming long-term energy storage technology.

Local governments have also introduced relevant guiding support policies to actively promote the pilot application of long-term energy storage, increase support for capacity leasing and capacity compensation, and encourage their participation in the spot market. In this trend, all-vanadium flow batteries have become a popular choice in the market due to their safety, longevity, low attenuation, flexibility and other characteristics, as well as the advantages of abundant vanadium resources and autonomous control.

According to industry forecasts, in the next 3 to 7 years, China's "new energy + vanadium battery energy storage" industry will open a trillion-level market, providing a broad space for the development of all-vanadium flow batteries.

Conclusion

With its unique technical advantages and wide application prospects, all-vanadium flow batteries are becoming an important development direction in China's energy storage industry. With the continuous progress of technology, the strengthening of policy support and the growth of market demand, the potential of all-vanadium flow batteries in solving large-scale and long-term energy storage problems will be further released.

Related articles: off grid solar batteries, lithium rv battery, top 10 solar inverters