The redox flow battery, particularly the vanadium redox flow battery (VRFB), has been a promising technology for stationary energy storage applications. However, economic barriers have hindered its widespread adoption compared to the dominant lithium-ion battery technology. The high upfront costs associated with vanadium electrolyte and membranes have been a major challenge for VRFB developers.
Despite these challenges, recent market reports suggest that the redox flow battery market is set to grow significantly in the coming years. Developments in vanadium markets, the exploration of cheaper RFB chemistries, and the increasing demand for long duration energy storage technologies are all factors contributing to this potential growth. By 2034, the market for redox flow batteries is forecasted to reach US$2.8B.
In order to overcome the economic barriers, VRFB developers are exploring innovative solutions such as leasing vanadium electrolyte from suppliers. This model allows for reduced upfront costs and could make VRFBs more competitive with lithium-ion batteries for stationary storage applications. Additionally, efforts to increase vanadium supply through the exploitation of new mines could help lower the cost of vanadium electrolyte and improve the economic case for VRFBs.
While VRFB technology continues to be deployed by key players in the industry, the development of cheaper RFB chemistries using more widely available materials poses a potential threat. Companies like CMBlu Energy AG are making strides in developing alternative redox flow battery technologies that could compete with VRFBs in the future.
Overall, the future outlook for redox flow batteries, regardless of chemistry, looks promising for long duration energy storage applications. As the demand for energy storage technologies continues to grow, the redox flow battery market is expected to expand, offering a viable alternative to lithium-ion batteries for stationary storage solutions.
