Approximate global vanadium pricingvanadium.electrolyte

Electrolyte ~$14.00-30.00 USD/LB V2O5  (X0.54 for Litre measurement)
Canada/USA/International Availability: Low

 V2O5 ~$11.00 USD 
Canada/USA Availability: Low

VanadiumCorp ElectrolyteTM

  • Direct (primary) process electrolyte from ground source & multi feedstock
  • Standardized purity/impurity objective
  • Lowest global pricing objective
  • Lease option available 

Unique lease option possible with Vanadium Batteries

  • Vanadium electrolyte can be reused indefinitely
  • 25+ year battery lifespan (VRFB)
  • Lease removes upfront cost 
  • Leasor retains value for life of product (Unlimited for the electrolyte)

Cost reduction potential

Competion in the grid storage battery market hinges on cost, especially capital cost. Driving down capex and initial capital deployment could make VRFBs a formidable option to the best alternatives. Analysts estimate the cost of the VRFB system at about $1200/KwHr capacity and a need to reach $800/KwHr to be competitive with other technologies.

Industry objectives - Less then $400/KwHr possibility

  1. 20-50% Cost reduction - Primary vanadium production (direct process)
  2. Standardization - Cost mitigation of unnecessary testing requirements
  3. Leasing to remove upfront cost of electrolyte or entire system
  4. Local production - International shipping of electrolyte is cost prohibitive as most vanadium is produced in China, Brazil and South Africa in large smelters or roasting facilities
  5. Economy of scale - the cost of building the cell stacks could decrease significantly as the industry scales up and could reduce total system cost by 30% in the foreseeabe future
Note: A VRFB system (not including the electrolyte) is approximately US$700/KwH. If electrolyte was procured at USD$4.00/pound V2O5, and stack cost decreased as expected, the total cost of a VRFB system could potentially drop under $400/KwH. Leasiing, local supply and purity standards would further enhance this value prosposition.
Pricing Structure, affect on VRFB $/KwH
  • Current estimates attribute ~42% of the cost of a VRFB to the electrolyte.
  • 20 pounds of V2O= 1.7 Molar Vanadium Electrolyte =1 KwH of storage.
  • One GwHr of storage using VRFB requires ~5,000 MTV. 
  • Energy storage industry estimates assume an electrolyte cost above $25.20/pound V2O5
  • The general cash cost of producing the electrolyte globally from V2Oranges from $3.00-$10.00/pound V2O
  • Vanadium electrolyte is sourced from V2O5  as a secondary process (V2O5 without specific purity/impurity requirement) resulting in higher costs attributed to purification and testing required due top lack of standardization
  • The chemical purity of the electrolyte needs to be defined by the battery producers.  To this date there is no standard and defined purity requirement are unknown

No primary producer of Vanadium exists (yet)

  • The variable market price V2O5 is the largest challenge facing the VRFB industry.
  • V2O5, the main cost component of the battery has fluctuated in market price in the last decade from USD$1.50-$35.00/pound  
  • The vast majority of vanadium is recovered by smelting or roasting, adding significant cost before purification and production as limited quantities are sourced from the predominant steel market
  • Without primary production of vanadium electrolyte, stable supply and low pricing does not yet exist and electrolyte price is a function of secondary V2Osupply sourced from existing producers

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