Major Chinese titanium and vanadium producer Pangang Group Vanadium/Titanium Resources and the world's largest producer of high-purity vanadium products and vanadium electrolyte Dalian Borong New Materials (BNM) will jointly promote the commercialisation of vanadium redox flow battery (VRFB) energy storage.
The agreement, signed on 10 September, marks Pangang's entry into the energy storage industry, which will accelerate comprehensive utilisation of vanadium resources in the Panzhihua region and promote the upgrading of the vanadium industry.
China's aim to accelerate a transition to lower energy consumption and to stimulate demand for renewable energy and energy storage products during its 14th five-year economic plan for 2021-25 has prompted many companies to develop new VRFB projects. VRFBs have a much larger energy storage capacity than lithium batteries. It is more effective for China's plans to achieve its target of peak carbon emissions by 2030 and carbon neutrality by 2060, according to market participants. China aims to install 120GW of new wind and solar power generation capacity in 2021.
The firm has also expanded its layout in the vanadium industry recently. It acquired 100pc equity of Xichang Vanadium Products Technology on 6 August, which is expected to double its vanadium output after the acquisition.
The firm on 4 September signed a cooperation framework agreement with key domestic vanadium flake supplier Sichuan Desheng to set up a joint venture focusing on processing vanadium slag. Pangang will contribute 65-70pc of cash capital, while the remainder will come from Sichuan Desheng. The joint venture will build a vanadium slag processing facility with 20,000 t/yr vanadium pentoxide equivalent of capacity.
Market participants estimate around 9.25t of vanadium pentoxide is used in each MWh of vanadium storage battery. China is expected to install around 30-60GWh of new energy storage capacity by 2030, corresponding to 28,000-56,000 t/yr of extra demand for vanadium pentoxide during 2021-2030.
BNM develops and produces high performance vanadium products. Its full product range includes vanadium oxides, vanadium compounds and vanadium electrolyte, which have applications in aerospace, energy, chemical industry and other emerging markets.