Flow battery industry achieves major breakthrough: All-vanadium route dominates the market, and new technologies accelerate commercialization

Against the backdrop of surging global demand for long-duration energy storage, flow batteries have become a focus in the energy storage industry due to their safety, long lifespan, and scalability. Recently, the commercialization process of all-vanadium redox flow batteries (VRFBs) has accelerated, and key progress has been made in new flow battery technologies such as iron-based and zinc-bromine batteries, ushering in a new wave of investment in the industry.

I. Policies and Market: Countries Increase Investment in Flow Battery Deployment

1. ChinaIn May 2024, the National Energy Administration issued the "Development Action Plan for Flow Battery Energy Storage Technology," proposing that by 2027, the cost of all-vanadium flow batteries will decrease by 30%, and the cycle life will exceed 20,000 cycles. Provinces such as Liaoning and Gansu have included flow batteries in the priority technology roadmap for new energy paired storage.

2. Europe and the United StatesThe U.S. Department of Energy (DOE) has allocated $120 million to support the localization of the flow battery supply chain; the EU's "Horizon Europe" program funds flow battery projects, aiming to achieve energy storage costs below €0.05/kWh by 2030.

3. Emerging MarketsAustralia's first GW-level all-vanadium flow battery project has been launched, and South American lithium-resource countries (such as Chile) are exploring the feasibility of vanadium batteries replacing lithium batteries.

II. Technological Breakthroughs: All-Vanadium Takes the Lead, New Flow Batteries Emerge

1. All-Vanadium Redox Flow Battery (VRFB)：

Dalian Rongke's world's largest 400MWh all-vanadium energy storage power station was connected to the grid in April 2024, with efficiency increased to 75%;

Beijing Puna launched a new generation of "high-power density" stacks, with unit cost reduced by 40%, and received a 10GWh order from China Three Gorges Corporation.

2. Iron-Based Flow Battery (IFB)：

ESS Inc.'s iron-based battery system (Energy Warehouse) in the United States has deployed a 100MWh project in California, with a cycle life of up to 25,000 cycles;

The Chinese Academy of Sciences has developed a low-cost iron-chromium flow battery, with a key material domestication rate exceeding 90%.

3. Zinc-Bromine Flow Battery (Zn-Br)：

Redflow's zinc-bromine battery in Australia has achieved commercial use in off-grid energy storage projects in Africa, adapting to high-temperature environments.

III.Industry Chain Dynamics: Upstream Expansion, Capital Influx

1. Intensified Competition for Vanadium Resources：

China Panzhihua Iron and Steel Group and Russia's Evraz have expanded the production capacity of vanadium electrolyte, with global vanadium prices increasing by 15% in 2024;

The American startup CellCube has partnered with a Brazilian mining company to establish the first vanadium battery supply chain in South America.

2. Active Investment and Financing：

Flow battery companies have raised over $2 billion in financing in 2024, with Form Energy (iron-air battery) in the United States receiving investment from Bill Gates;

Chinese flow battery industry chain companies (such as Xingchen New Energy and Weilide) have launched IPO plans.

IV. Challenges and Opportunities: Cost Reduction and Standardization Are Key

Although flow batteries have obvious advantages in the field of long-duration energy storage, the current cost of all-vanadium systems is still higher than that of lithium batteries (approximately $300-500/kWh). The industry is breaking through through the following paths:

1. Cost Reduction Through ScaleDalian Rongke plans to increase production capacity to 10GWh in 2025, pushing down costs to below $200/kWh.

2. Technological InnovationSuch as the research and development of non-vanadium systems (organic flow batteries), avoiding resource dependence.

3. Policy SupportChina plans to introduce special subsidies for flow batteries, and Europe and the United States will include flow batteries in the list of "key energy storage technologies."

V. Expert Opinions：
"Flow batteries are an ideal choice for energy storage of 8 hours or more," said a Bloomberg New Energy Finance (BNEF) energy storage analyst. "The all-vanadium route will dominate the market in the next 3 years, but iron-based technology may become a "dark horse."

VI. Company Trends：

Contemporary Amperex Technology Co., Limited (CATL)Deploying all-vanadium flow batteries, cooperating with Sichuan vanadium-titanium enterprises.

Sumitomo Electric Industries, Ltd.Restarting the flow battery business, targeting the Southeast Asian market.

Start-up CompaniesSuch as Invinity Energy Systems in the UK, accelerating the implementation of overseas projects.

Liaoning Jingu Carbon MaterialsCo., Ltd.'s electrode materials will continue to contribute to the development of the industry.

Outlook：
According to UBS's prediction, the global installed capacity of flow batteries will exceed 80GWh in 2030, with China accounting for more than 50%. With the surge in demand for renewable energy grid integration, flow batteries may become a "backbone" in the field of long-duration energy storage.