Largo Resources, a major producer of vanadium, recently stated that the use of vanadium for battery electrolytes was two times as profitable as supplying the metal to be used in the production of steel. The company notes that the market for vanadium, which is suitable for long-duration energy storage, will be a good opportunity.
Toward the end of 2020, the company launched Largo Clean Energy, its subsidiary, whose purpose will be to obtain vanadium from Largo Resources’ mining operations in Brazil and utilize it in its vanadium redox flow battery (VRFB) product known as VCHARGE±. Largo believes that it can capture an estimated 3% of the international long-duration energy storage market based on the decline in the use of fossil fuels and the current increase in the use of variable renewable energy.
Largo held a Battery Day at the start of June, which centered on the company’s strategies for venturing into the international vanadium redox flow battery energy storage business. Vanadium redox flow batteries are designed to store energy for roughly 12 hours, which is considerably longer than the normal four-hour duration that Li-ion batteries store energy for. The company’s analysts predict that by the year 2025, the total addressable market for VRFBs will be about 50,000MWh.
The company expects that by next year, it will have made 40 megawatt-hours of electric energy deployments, before increasing its production to about 1400 megawatt-hours yearly by 2025 in an attempt to meet the market share target.
Salvatore Minopoli, Largo vice president of operations, stated that the company, which has sales offices in the state of Washington, was based out of Massachusetts and had manufacturing facilities in New Hampshire and Massachusetts. He added that the company possessed in-house manufacturing capabilities, access to vanadium and commercially available technology. Largo director Ian Robertson also noted that demand from the battery market was so high that the primary factors that could hinder the company from hitting its targets were the amount of vanadium it could produce and its manufacturing capacity.
The company also revealed that it would be providing a leasing model that would lower the consumer’s cost of storing energy but grow the firm’s long-term revenue stream. This is a good move for the company, as vanadium retains its value even after decades of use and does not degrade.
Largo is currently focused on building an asset portfolio of vanadium electrolyte and selling vanadium redox flow battery systems directly to its consumers.
As more entities, such as StorEn Technologies Inc., specialize in making vanadium flow batteries, the residential and industrial sectors are likely to experience an increased uptake of this superior energy storage method.
NOTE TO INVESTORS: The latest news and updates relating to StorEn Technologies Inc. are available in the company’s newsroom at https://ibn.fm/StorEn
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