The Growing Global Market For Vanadium Storage Batteries

The UK this summer relaxed planning restrictions around the construction of large electricity storage batteries as it recognised these will play a critical role in the broadening British carbon neutral strategy. The UK currently has 1GW of operational battery storage units, with an additional 13GW under development or at the planning stage.

The global market for vanadium redox batteries is now estimated at $234m and is projected to reach $4.8bn by 2027, which translates into a CAGR of 54% over the period 2020-27. The US accounts for over 30% of global market size while China is forecast to grow by 51% CAGR over the same period. Japan and Canada are also considered to be substantial growth markets in this space.
It is becoming increasingly obvious to many investors that the vanadium redox battery story is no flash in the pan. Apart from Invinity Energy Systems, companies like Bushveld Minerals (LSE:BMN) and Australian Vanadium (ASX:AVL) have also emerged as prospects with heavy exposure to the emerging vanadium battery market. In addition, Pineapple Power also announced it was planning to launch the first SPAC (cash shell) targeted at one or more dedicated opportunities in the vanadium battery space.