China Vanadium Consumption Set to Rise in 2026 as VRFB Demand Accelerates

Vanadium

China vanadium consumption is expected to rise in 2026 as vanadium redox flow batteries, steelmaking, lithium iron phosphate cathode materials and denitration catalysts increase demand. The strongest growth is likely to come from VRFB-based energy storage, where projects are entering a more concentrated construction and commissioning phase.

China vanadium consumption reached 125,900t of vanadium pentoxide equivalent in 2025, up 6.1% from 2024. The market is now shifting from a steel-dominated structure toward a more diversified demand base.

China vanadium consumption still depends heavily on steel, but the share of energy storage has expanded quickly. Steel accounted for 70.9% of total demand in 2025, down from 87.9% in 2021. Energy storage rose to 20% of total use from only 4% over the same period.

This change is strategically important for vanadium producers. Demand is no longer driven only by construction steel, rebar and alloy additions. It is increasingly tied to long-duration energy storage, grid stability, batteries, catalysts and higher-value industrial applications.

VRFB Storage and Steel Demand Drive the 2026 Consumption Outlook

Vanadium demand from VRFB energy storage is expected to increase sharply in the second half of 2026. China’s National Development and Reform Commission and National Energy Administration issued a notice on 30 January to improve the generation-side capacity price mechanism, supporting longer-duration storage.

This policy direction matters because VRFB technology is better suited to long-duration applications than many short-duration battery systems. VRFBs offer long cycle life, high safety, deep-discharge capability and easier electrolyte reuse.

China’s VRFB installations in 2026 are preliminarily estimated at 4-5GWh. This forecast reflects projects already under construction and the availability of high-purity vanadium for electrolyte production.

That installation level would require around 32,000-40,000t of V2O5 equivalent. This would represent an increase of 8,000-16,000t from the previous year, making VRFBs the largest source of incremental vanadium demand.

The growth builds on rapid progress in 2025. VRFB projects with completed electrolyte filling totalled about 3,037.5MWh last year, up 1,027.3MWh from 2024. China’s cumulative VRFB installed capacity reached about 6,064.5MWh by the end of 2025, with an average duration of 4.12 hours.

The market is now moving from pilot-stage expansion to larger system deployment. As more long-duration storage projects reach construction and commissioning, vanadium electrolyte demand could become more predictable.

Steel remains the largest end-use sector. Vanadium demand from China’s steel industry is expected at 92,000-95,000t in 2026, up 3,000-6,000t from 2025.

The increase is tied to stronger demand from machinery, energy, shipbuilding, automotive and rail sectors. These ferro-vanadium end-use segments are expected to grow by around 1.2% in 2026.

The steel demand signal was already visible in the first quarter. Steel-sector vanadium consumption reached around 22,600t, up 1,800t from a year earlier.

Rebar could also provide support. Output of higher-grade steel reinforcement bar is expected to rise as infrastructure investment accelerates. Production licence rules for construction rebar took effect on 1 April, while quality traceability requirements have expanded.

These rules should raise the share of vanadium-nitrogen micro-alloyed hot-rolled rebar. That would support demand for vanadium-nitrogen alloy, especially in higher-strength construction products.

The 2025 steel data show a more complicated picture. Vanadium consumption in the steel sector reached around 89,300t, up 1,700t from 2024. However, vanadium-nitrogen alloy consumption fell by 3.8% to 36,690t because rebar’s share of vanadium use declined.

China’s rebar output fell to 186.3mn t in 2025, down 4.5% from a year earlier. This reduced vanadium demand from traditional construction steel.

Ferro-vanadium performed better. FeV50-equivalent consumption rose by 10.4% to around 39,985t, supported by stronger downstream output in several industrial sectors.

Automotive production reached 34.778mn units in 2025, up 9.8%. Civil steel shipbuilding totalled 52.295mn deadweight tonnes, up 18%. Excavator output rose by 17% to 379,643 units.

Machine tool output also increased. Metal-cutting machine tool production rose by 9.7%, while metal-forming machine tool output increased by 7.2%. These sectors helped offset weakness in rebar.

Vanadium intensity also rose. China’s vanadium use per tonne of crude steel increased to 51g of vanadium metal equivalent in 2025 from 48g in 2024. Rebar intensity edged up to 152.5g, while other steel products rose to 26.6g.

LFP cathode materials will provide another smaller but fast-growing demand source. Vanadium consumption from LFP cathodes is estimated at 2,000-2,500t in 2026, assuming a typical 0.2% V2O5 addition rate.

That would be up by 1,000-1,500t, representing growth of 100-150%. The base remains small, but the rate of increase is significant.

Denitration catalysts should also support demand. Chemical-sector vanadium consumption is expected at around 7,000t in 2026, up about 500t, or 7.7%. Demand will be supported by catalyst replacement, new coal-based thermal power projects and higher sulphuric acid output.

In 2025, chemical-sector vanadium use was around 6,500t, up 200t from 2024. Titanium-alloy-related consumption fell by around 400t, tracking weaker Chinese titanium product exports.

Supply Growth Remains Limited by Feedstock and Cost Pressure

China’s vanadium supply remains highly concentrated, but output growth is not straightforward. The country accounted for 68.8% of global vanadium capacity in 2025 and 72.4% of global production.

China’s total vanadium capacity reached 277,600t in 2025. Actual output was 163,900t, down 900t from 2024.

The production base is dominated by vanadium slag. Output from vanadium slag reached 141,300t in 2025, broadly unchanged from the previous year.

Some producers reduced supply. Xinjiang Da’an and Yunnan Yukun did not produce, cutting combined output by about 8,000t. Other producers, including Chengsteel, Desheng and Dagang, raised output by around 15%, offsetting part of the loss.

Stone-coal-based vanadium output fell more sharply. Production declined to 7,600t in 2025, down 2,600t from 2024, as lower prices left all stone-coal producers loss-making.

This route remains highly price-sensitive. At current price levels, only one large-scale stone-coal producer is operating, with output of around 100-120 t/month of ammonium metavanadate on a V2O5-equivalent basis.

A Shaanxi-based producer with capacity of 300-350 t/month has been suspended since early 2026 because of safety issues. It is unlikely to restart in the first half.

Vanadium flake prices rose to 83,000-84,000 yuan/t in March, prompting some stone-coal producers to consider restarts. However, current prices still appear insufficient to drive a large supply response.

Even when prices approached 110,000 yuan/t in 2023, stone-coal-based output only reached about 11,000t. This suggests that 2026 output growth from stone coal will likely remain limited.

Secondary resources are becoming more important. Vanadium output from spent catalysts and other secondary sources rose to 15,100t in 2025, up 1,900t from 2024.

This included about 6,700t from alumina by-product recovery, up around 1,700t. Output from spent catalysts and petroleum residues stayed broadly stable despite lower vanadium prices.

The reason is co-product economics. Vanadium is often recovered alongside molybdenum and tungsten from secondary feedstocks. Higher molybdenum and tungsten prices supported operating rates and helped keep secondary recovery viable.

Secondary output is expected to remain broadly unchanged in 2026. Feedstock availability is relatively stable, but China’s restrictions on solid-waste imports since 2017 limit the potential for major raw material growth.

Vanadium slag-based supply may edge higher in 2026, but feedstock constraints create uncertainty. Qinhuangdao Baigong completed a 10,000 t/yr V2O5 line in early 2026 and is ramping toward normal operations. Its 2026 output guidance is around 5,000t.

However, tighter domestic feedstock availability could offset this addition. Vanadium-titanium magnetite supply in the Panzhihua area is particularly constrained, potentially cutting output by about 4,500-5,000t of V2O5 equivalent.

Producers in Sichuan and Yunnan may need to source vanadium-titanium magnetite from the Chengde area or increase imports to keep output in line with 2025. A northeastern steelmaking-based vanadium producer has also reduced vanadium-titanium magnetite imports since December 2025.

This creates a cautious supply outlook. China’s vanadium output may edge higher in 2026, but the increase depends on whether new slag-based capacity can offset feedstock tightness and further weakness in stone-coal production.

The market therefore faces a potential demand-led tightening risk. VRFB demand is rising quickly, steel demand is improving modestly and smaller sectors are growing. Supply growth, meanwhile, remains constrained by feedstock, cost pressure and limited secondary resource availability.

For vanadium producers, the key opportunity lies in high-purity electrolyte-grade material. VRFB demand requires reliable vanadium quality, stable supply and long-term availability. Producers that can supply battery-grade vanadium will be better positioned than those focused only on metallurgical demand.

For steel users, the issue is price exposure. If VRFB demand absorbs more vanadium units, ferro-vanadium and vanadium-nitrogen alloy buyers could face stronger competition from the energy storage sector.

For energy storage developers, the issue is raw material security. VRFB growth depends on enough high-purity vanadium to support electrolyte production. Supply constraints could affect project economics if demand accelerates faster than conversion capacity.

The Metalnomist Commentary

China’s vanadium market is entering a new phase where steel remains the base, but VRFBs set the growth direction. The strategic tension in 2026 will be whether constrained supply can keep pace with energy storage demand without pricing steel users out of the market.

VR8 Vanadium Slag Offtake Deal Links Steelpoortdrift to US Vanadium Supply

Vanadium Resources

VR8 vanadium slag offtake plans have advanced after Australia-listed Vanadium Resources signed a non-binding agreement with US Vanadium Holding. The agreement covers vanadium-bearing slag from VR8’s proposed V-Iron critical minerals smelter in South Africa.

VR8 vanadium slag offtake would give US Vanadium access to all production from the V-Iron plant. The facility is planned to process high-grade vanadium-titanium magnetite ore from VR8’s Steelpoortdrift project.

VR8 vanadium slag offtake is strategically important because Steelpoortdrift sits in South Africa’s Bushveld Complex, one of the world’s most important vanadium-bearing regions outside China and Russia.

The project contains 4.74mn t of vanadium pentoxide, giving VR8 a large resource base for future vanadium supply. The V-Iron plant will also produce pig iron, adding another commercial product stream.

Steelpoortdrift Could Support Ex-China Vanadium Supply

Steelpoortdrift’s location in the Bushveld Complex gives the project strategic weight. The region hosts major vanadium-titanium magnetite resources and remains one of the few large-scale alternatives to China and Russia.

This matters because vanadium is becoming more important for steel, energy storage, industrial alloys and defence-related supply chains. Vanadium improves steel strength and is also used in vanadium redox flow batteries for long-duration energy storage.

The proposed V-Iron plant would process Steelpoortdrift ore into vanadium-bearing slag. That slag can then be used as feedstock for downstream vanadium recovery.

Recent testing by US Vanadium confirmed that high-grade slags from Bushveld Complex ores are suitable for its facility. This technical validation is important because slag quality, chemistry and recoverability will determine commercial value.

The agreement gives VR8 a potential downstream customer before the smelter reaches final investment stage. It also gives US Vanadium a possible future feedstock source tied to a large non-China resource base.

Binding Offtake Depends on Feasibility Study

The current agreement is non-binding. VR8 and US Vanadium plan to negotiate a binding offtake after completion of the V-Iron feasibility study.

That study will be critical. It must confirm capital costs, operating costs, slag quality, pig iron economics, processing route, logistics and project execution risk.

If the companies do not reach a binding agreement, VR8 will grant US Vanadium a right to match any third-party offer for 20% of the plant’s vanadium slag output. This keeps US Vanadium commercially positioned even if negotiations change.

For VR8, the agreement supports project credibility. Early customer interest can strengthen financing discussions and show that downstream processors are willing to evaluate Steelpoortdrift-derived material.

For US Vanadium, the deal fits a wider supply security trend. Western processors are looking for reliable feedstock sources outside dominant supply regions, especially for critical minerals with concentrated production chains.

The broader market implication is clear. Vanadium supply chains are becoming more strategic as long-duration energy storage and high-strength steel demand grow. Projects that can connect resource, smelting and qualified downstream processing will attract stronger attention.

The Metalnomist Commentary

The VR8-US Vanadium agreement shows that vanadium strategy is moving from resource ownership toward integrated feedstock security. Steelpoortdrift’s value will depend on whether the V-Iron plant can turn Bushveld ore into reliable slag supply for downstream processors.

China Vanadium Prices Weaken as Supply Rises and Steel Demand Slows

China Vanadium

China vanadium prices are under renewed pressure as higher spot availability, weak alloy demand and softer steel mill tenders weigh on the market. Domestic 98% grade vanadium pentoxide flake prices fell to 82,000-87,000 yuan/t on 8 May, their lowest level since 20 April.

China vanadium prices began to soften in late April after alloy producers slowed purchases and cut procurement bids. Most ferro-vanadium producers lowered feedstock buying levels after steel mill tender prices came in below market expectations.

China vanadium prices are also being pressured by rising output. Domestic vanadium production reached 56,040t of vanadium pentoxide in January-April, up 7.6% from a year earlier.

The market is now facing a classic supply-demand imbalance. Higher vanadium flake and slag production has increased spot availability, while steel-sector demand remains weak and export outlets are slowing.

Higher Flake and Slag Output Increases Spot Availability

China’s vanadium supply increased because stronger earlier prices encouraged producers to lift output from vanadium-bearing steel slag. Vanadium-containing steel slag production rose to 49,320t in January-April, up 8% from a year earlier.

Higher flake prices in the first four months improved margins for slag-based production. Domestic 98% grade vanadium pentoxide flake averaged 80,812 yuan/t ex-works during January-April, up 9.5% from a year earlier.

New capacity has also added pressure. Qinhuangdao Baigong Steel started a 10,000 t/yr vanadium pentoxide flake production line in Hebei province in February.

This additional output arrived just as downstream buying slowed. Major flake suppliers had not finalised some contracts by 8 May, while some alloy producers were buying only limited volumes at lower cash prices.

The increase in spot availability has changed buyer behaviour. Alloy producers are no longer rushing to secure feedstock because they expect further price weakness.

That expectation can reinforce the decline. When buyers delay purchases, sellers face more pressure to reduce offers, especially when inventories rise and steel demand remains poor.

Weak Steel Tenders and Export Slowdown Limit Demand

Ferro-vanadium demand remains the main drag on the vanadium market. Domestic 50% grade ferro-vanadium prices fell to 93,000-94,000 yuan/t ex-works on 8 May, their lowest level since 1 April.

Steel mill tender prices also declined. Prices paid by steelmakers fell to 94,000-95,000 yuan/t delivered, including VAT and payable by acceptance bill, down from late-April levels.

Steelmakers are lowering bids because steel margins remain weak. This is especially important for vanadium because much of its demand comes from alloying in rebar and other steel products.

China’s rebar production fell to 29.54mn t in January-April, down 8.6% from a year earlier, as the real estate slowdown continued to reduce construction-related steel demand.

Steelmakers purchased an estimated 6,865t of vanadium alloys in April, down 17% from a year earlier. This confirms that weaker steel consumption is now feeding directly into lower vanadium alloy demand.

Export conditions are also turning less supportive. China’s vanadium flake exports are expected to decline in the coming months as international production increases.

Canadian producer Largo more than doubled vanadium pentoxide output in the first quarter to 2,616t, supported by higher-grade ore and steadier processing at its Brazilian mine. Russian producer Evraz also started a new 15,000 t/yr vanadium pentoxide flake plant in March and is expected to ramp up by June.

These additions reduce the need for some overseas buyers to rely on Chinese flake. That weakens a potential outlet for excess Chinese supply.

The near-term outlook remains soft. Unless steel mill tenders recover or vanadium exports improve, rising spot availability will likely keep pressure on vanadium pentoxide flake and ferro-vanadium prices.

The Metalnomist Commentary

China’s vanadium market is being hit by the wrong combination: rising supply, weak rebar output and cautious alloy buying. The longer-term battery storage story remains attractive, but near-term pricing still depends heavily on steel demand and feedstock discipline.

Queensland vanadium electrolyte plant investment backs Australia’s flow battery ambitions

Queensland Vanadium Plant

Queensland vanadium electrolyte plant investment signals a stronger push into long duration energy storage in Australia. The state government has committed A$10mn to Vecco’s Julia Creek mine and Townsville vanadium electrolyte plant. As a result, the Queensland vanadium electrolyte plant investment aims to anchor a domestic supply chain from ore to vanadium redox flow batteries.

Queensland vanadium electrolyte plant investment will support Australia’s first commercial scale electrolyte facility in Townsville. Vecco plans to build a 300 MWh per year plant starting in 2026, with operations targeted for 2028. This will scale up from its existing 35 MWh per year Townsville unit, which already produces vanadium electrolyte. Therefore, Vecco can leverage operational experience as it ramps to larger industrial volumes.

Julia Creek mine links vanadium ore to battery electrolyte

The Julia Creek mine forms the resource backbone of the Queensland vanadium electrolyte plant investment. Vecco plans to open the 8,700 t per year vanadium pentoxide operation in 2027. The mine will supply feedstock directly to the larger Townsville electrolyte plant, closing the loop between mining and chemicals.

This integrated structure reduces reliance on imported vanadium intermediates and marketing risk. Meanwhile, it supports Australia’s broader critical minerals strategy focused on value added processing, not just ore exports. Over the life of the project, Vecco aims to position Julia Creek as a stable source for flow battery grade vanadium.

Queensland vanadium electrolyte plant investment also fits into a wider end to end supply chain vision. Vecco, Sumitomo Electric and Idemitsu Australia signed a 2024 agreement to develop and sell vanadium redox flow batteries. Therefore, vanadium units from Julia Creek could ultimately flow into installed energy storage systems across Australia.

Building a regional hub for vanadium redox flow batteries

Queensland is using the Queensland vanadium electrolyte plant investment to establish Townsville as a vanadium processing hub. Since 2021, the state has been developing a shared use vanadium processing facility to support smaller miners. This shared infrastructure should lower entry barriers and encourage more junior projects to progress.

At the same time, the Townsville electrolyte plant will target utility and industrial scale storage markets. Vanadium redox flow batteries offer long cycle life and deep discharge, which suit grid firming and renewable integration. However, they require secure supplies of high purity vanadium electrolyte to remain competitive with lithium ion systems.

Queensland’s support for Vecco, alongside Japanese partners, strengthens cross border industrial ties. It also diversifies vanadium production away from traditional suppliers in China, Russia and South Africa. As a result, the Queensland vanadium electrolyte plant investment could reshape regional vanadium trade and pricing dynamics over time.

The Metalnomist Commentary

This move shows how relatively modest public capital can unlock strategic value in long duration storage supply chains. By backing integrated mining and electrolyte production, Queensland improves the bankability of vanadium redox flow projects and attracts Japanese technology partners. Market participants should watch how fast offtake and project pipelines grow, as this will determine whether Townsville becomes a genuine Asia Pacific hub for vanadium battery materials.

Pangang Vanadium Output Fell as Titanium Dioxide Production Rose in 2025

Pangang Group

Pangang vanadium output declined slightly in 2025 as weak prices and oversupply continued to pressure China’s vanadium market. Pangang Group Vanadium and Titanium Resources, China’s largest vanadium producer, cut production by 0.4% on the year to 53,100t of vanadium pentoxide equivalent.

The lower Pangang vanadium output reflected a market still struggling to absorb available supply. China’s vanadium consumption increased in steel and vanadium redox flow batteries, but demand growth was not strong enough to remove the surplus.

Pangang’s overall revenue fell by 33% on the year to 8.89bn yuan, or about $1.29bn, as lower prices for both vanadium and titanium products reduced earnings momentum. The result shows how exposed integrated titanium-vanadium producers remain to price cycles across multiple industrial materials.

Vanadium Surplus Weighed on Prices Despite Battery Demand Growth

China’s vanadium market remained oversupplied in 2025 even though steel consumption and vanadium redox flow battery demand both increased. This limited the pricing benefit from battery-sector growth and kept pressure on producers.

Vanadium remains closely linked to the steel industry, where it is used to improve strength and performance in rebar and specialty steels. Battery demand is strategically important, but it has not yet become large enough to fully offset weakness or oversupply in the traditional steel-linked market.

The slight decline in Pangang vanadium output therefore signals production discipline rather than a structural shift away from vanadium. Producers are still waiting for stronger demand from energy storage to translate into tighter market fundamentals.

Titanium Dioxide Output Rose as Margins Remained Under Pressure

Pangang increased titanium dioxide production by 7.7% on the year to 272,500t in 2025. This included 69,200t produced through the chlorination process, which is typically used for higher-quality titanium dioxide products.

The company also produced 199,500t of sulphate titanium slag, up 9.8% from the previous year. Pangang has 1.8mn t/yr of titanium concentrate capacity, 220,000 t/yr of titanium slag capacity and 300,000 t/yr of titanium dioxide capacity, including 75,000 t/yr through chlorination.

China’s titanium dioxide sector remained difficult despite Pangang’s output growth. Domestic titanium dioxide output edged lower, feedstock titanium concentrate and sulphuric acid prices stayed elevated, and overseas anti-dumping measures weakened exports.

These pressures intensified competition and squeezed margins across the titanium dioxide industry. Pangang’s higher production therefore came against a challenging pricing and cost environment, not a broad market recovery.

The Metalnomist Commentary

Pangang’s 2025 results show that scale alone does not protect producers from weak vanadium and titanium pricing. The key question is whether battery storage demand and higher-value chlorination titanium dioxide can eventually offset oversupply and margin pressure in China’s mature industrial markets.

China Vanadium Output Cuts Stabilize Market Amid Inventory Pressures

China Vanadium

China vanadium output cuts across major producers aim to relieve spot inventory pressures and prevent further price declines in the domestic market. Strategic China vanadium output reductions by leading manufacturers including Pangang, Sichuan Desheng, and Chengde Jianlong demonstrate coordinated efforts to balance supply with moderate demand from vanadium alloy producers.

Major Producers Implement Strategic Production Reductions

China vanadium output faces significant curtailments as state-controlled Pangang leads industry-wide supply adjustments. The company scheduled blast furnace shutdowns from May through November, removing 750 tonnes monthly of vanadium pentoxide equivalent from the market. Additionally, Pangang suspended its No.3 blast furnace from March to November, cutting another 700 tonnes monthly.

Meanwhile, private-sector producer Sichuan Desheng planned five-day routine equipment maintenance starting May 20th. This scheduled suspension will reduce output by approximately 200 tonnes of vanadium pentoxide (V2O5) equivalent, contributing to the broader supply tightening strategy across Chinese vanadium manufacturers.

Regional Players Join Production Curtailment Strategy

Furthermore, China's third-largest vanadium producer Chengde Jianlong Iron and Steel implemented 15 days of blast furnace maintenance beginning April 20th. This maintenance schedule reduced output by an estimated 350 tonnes of V2O5 equivalent, reinforcing the industry-wide approach to supply management during challenging market conditions.

Therefore, Sichuan Chuanwei, ranking as the fifth-largest domestic vanadium producer, adopted a sales restriction strategy for May. The company plans to sell only 300 tonnes of vanadium pentoxide to regular consumers this month. Sichuan Chuanwei will redirect remaining pentoxide production toward in-house vanadium electrolyte manufacturing, further tightening external market supply.

Market Stabilization Through Coordinated Supply Management

However, these production cuts reflect broader challenges facing China's vanadium industry amid fluctuating demand patterns. Moderate demand from vanadium alloy producers creates supply-demand imbalances that necessitate proactive inventory management strategies. Market participants expect these output reductions to offset demand weakness and maintain price stability.

As a result, the coordinated approach among Chinese vanadium producers demonstrates sophisticated market management techniques. The strategic timing of maintenance schedules and production curtailments across multiple facilities suggests industry collaboration to prevent destructive price competition and preserve market fundamentals.

The Metalnomist Commentary

China's vanadium industry demonstrates mature market management through coordinated output cuts that prioritize price stability over volume maximization. This strategic approach reflects the sector's evolution toward sustainable production practices that balance supply with realistic demand expectations, particularly important given vanadium's critical role in steel alloys and emerging energy storage applications.

India's Vanadium Pentoxide Imports from China Surge Amid Policy Shift

Vanadium

Removal of Indian Import Duty Boosts V2O5 Flake Trade, Reshaping Global Vanadium Supply Chain

India's demand for vanadium pentoxide flake (V2O5) from China is expected to keep growing in 2025, fueled by a strategic shift in trade policy and booming domestic steel production. The lifting of India’s 5% import duty on V2O5 in July 2024 significantly boosted Chinese exports, with volumes hitting 5,659 tonnes that year — a 2% increase from 2023, largely attributed to India’s buying spree.

December’s V2O5 exports from China to India spiked fourfold year-over-year to 462 tonnes, showcasing India's aggressive restocking. Although this was down 30% from November's peak of 663 tonnes, the trend clearly favors continued growth into 2025.

India Shifts Focus from Ferro-Vanadium to Flake Feedstock

India’s Bureau of Indian Standards (BIS) certification requirement for foreign ferro-vanadium suppliers, introduced in September 2024, has added barriers to ferro-alloy imports. Many Chinese producers resist applying for BIS due to the intrusive approval process, which includes third-party inspections and disclosure of proprietary production data. As a result, Indian buyers have increasingly turned to V2O5 flake as a substitute for direct alloy imports.

India’s strategic move aims to strengthen its domestic ferro-vanadium industry by incentivizing the use of vanadium pentoxide feedstock. While ferro-vanadium imports still incur a 5% duty, V2O5 imports are now duty-free, giving Indian alloy producers a significant cost advantage. This policy shift aligns with India’s growing steel output — up 6.3% year-on-year to 149.6 million tonnes in 2024 — which naturally lifts vanadium demand.

Global Trade Dynamics Rebalance as India Rises

China, the world’s largest vanadium producer with 70% of global output, saw its V2O5 production rise 3.3% to 165,000 tonnes in 2024. As traditional buyers like South Korea, Japan, and Germany scaled back imports due to sluggish steel demand, India stepped in as a key growth market. Indian imports of Chinese V2O5 soared to 470 tonnes in 2024 from zero the previous year — a monumental shift.

Even as ferro-vanadium exports from China to India jumped to 200 tonnes in 2024 — 33 times more than in 2023 — the rising preference for vanadium flake suggests a long-term structural pivot. With India’s BIS certification deadline looming in March 2025, foreign ferro-vanadium suppliers without certification will be locked out, reinforcing India’s reliance on Chinese V2O5 flake.

Looking ahead, India’s rising crude steel output and policy-driven demand for vanadium flake are poised to reshape vanadium trade flows. As China ramps up its production capacity, both nations may find themselves increasingly entwined in the evolving global vanadium market.

US Vanadium Pentoxide Purchase Signals Stronger Defense Support for Aerospace Supply

US Vanadium

The US vanadium pentoxide purchase marks a strategic move to strengthen aerospace materials security. The Defense Logistics Agency plans to buy high-purity V2O5 from US Vanadium and Largo through five-year fixed-price contracts. These materials are intended for aerospace applications. As a result, the US vanadium pentoxide purchase supports both defense readiness and supply chain stability.

This decision matters because vanadium processing capacity remains limited in the United States. US Vanadium is the only at-scale domestic producer of aerospace-qualified V2O5. Largo also plays a major role as a leading supplier of aerospace-grade material to the US market. Therefore, the US vanadium pentoxide purchase reflects a targeted effort to secure trusted suppliers.

The scale of the tender also shows seriousness of intent. The DLA initially sought up to 2,876 metric tonnes of V2O5. That is not a symbolic procurement action. Consequently, the contract structure suggests the government wants predictable supply rather than spot-market exposure.

Aerospace Grade V2O5 Is Becoming a Strategic Material

Aerospace grade V2O5 is now being treated more clearly as a strategic material. High-purity vanadium pentoxide supports aerospace applications that require strict quality standards and reliable sourcing. That makes supplier qualification just as important as simple volume availability. As a result, the government is focusing on producers that already meet aerospace-grade requirements.

The supplier mix also highlights how narrow this market remains. US Vanadium provides domestic refining strength through its Arkansas flaking plant. Largo adds supply from its Maracás Menchen operation in Brazil. Therefore, the US vanadium supply chain still depends on a combination of local processing and allied foreign production.

That dependence helps explain the fixed-price structure. Long-term contracts can reduce uncertainty for both buyers and producers. They can also help keep strategic capacity alive in markets where pricing volatility and trade disruption create operating stress. Consequently, the DLA appears to be using procurement as an industrial policy tool.

US Vanadium Supply Chain Still Faces Fragility

The US vanadium supply chain remains fragile despite this support. The DLA noted that Largo faces financial pressure and could be at risk of failure for reasons beyond its control. That warning is important because it shows supply security cannot be assumed even when qualified producers exist. Therefore, the procurement effort is also a stabilization measure.

Trade policy has already added pressure to the market. Largo previously delayed and defaulted on some vanadium shipments to US customers because of tariffs on Brazilian imports and liquidity challenges. That combination of trade friction and financial strain shows how quickly critical mineral supply can weaken. As a result, the US vanadium pentoxide purchase may help prevent a deeper break in supply continuity.

The broader lesson is clear. Defense supply chains need more than access to raw materials. They need qualified processing, financially viable producers, and predictable contract support. Consequently, this V2O5 procurement may become a model for how the US handles other specialty minerals with narrow supplier bases.

The Metalnomist Commentary

This is more than a routine procurement contract. It is a reminder that critical minerals security often depends on keeping a very small number of qualified producers alive. In vanadium, the challenge is not just finding material. It is preserving the industrial capability to deliver aerospace-grade material consistently.

Bushveld Mineral

South African Output Cuts to Boost China's Vanadium-Nitrogen Exports

Rising Exports Driven by Lower South African Production and Strong US Demand

China’s vanadium-nitrogen exports are expected to see significant growth in 2025, primarily due to output cuts from a major South African producer, increasing demand from the US, and strong export interest from Chinese producers. Market participants anticipate a boost in global vanadium-nitrogen trade, benefiting China’s export numbers.

Impact of South African Output Cuts on Global Vanadium-Nitrogen Supply

South African vanadium-nitrogen production has been notably impacted by ongoing equipment maintenance at Bushveld Minerals Vametco plant. From mid-December to March 2025, the plant will operate at reduced capacity due to a cash shortage. In 2024, Bushveld’s production fell by 19%, amounting to 1,387 tonnes. This reduction in South African output is expected to continue in 2025, with the producer operating at low run rates due to negative profit margins. Consequently, China is positioned to capitalize on these cuts by increasing its exports.

Global vanadium-nitrogen alloy production is heavily concentrated in China and South Africa, with other countries lacking the necessary technology due to intellectual property restrictions. While European and US steel mills often prefer using ferro-vanadium (80% grade) over vanadium-nitrogen, China’s export increase in vanadium-nitrogen reflects changing dynamics in the alloy market.

Surge in China’s Vanadium-Nitrogen Exports and US Market Demand

China’s vanadium-nitrogen exports more than doubled in 2024, reaching 2,523 tonnes, up from 945 tonnes in 2023. This growth can be attributed to South Africa’s lower output and China’s expanded export activities. Notably, in December 2024, China’s vanadium-nitrogen exports surged five-fold to 377 tonnes, compared to just 67 tonnes a year earlier.

The US was the largest buyer of Chinese vanadium-nitrogen in 2024, importing 892 tonnes, more than double the 335 tonnes purchased in 2023. Canada also saw a dramatic increase in imports, with 323 tonnes imported, a more than five-fold rise from 60 tonnes in 2023. India’s demand also increased by 69%, reaching 317 tonnes in 2024. The US demand for vanadium-nitrogen is expected to continue to rise, as the US government, under President Trump, has pledged to boost domestic construction activities, which will likely increase the demand for steel alloys.

Export Prices and Market Dynamics

Chinese export prices for vanadium-nitrogen are currently in the range of $20.30 to $21 per kilogram, lower than European prices of $23.80 to $24.20 per kilogram. Chinese smelters are more inclined to sell to overseas markets to address domestic oversupply issues. In 2024, China produced 41,500 tonnes of vanadium-nitrogen, surpassing domestic steel mills' consumption of 34,800 tonnes. However, some alloy smelters reduced production from 2023 levels due to negative profit margins and weaker steel demand.

Largo Vanadium Pentoxide Output Doubles as Brazil Ore Grades Improve

Largo

Largo vanadium pentoxide output more than doubled in the first quarter as higher-grade ore and steadier processing lifted production at the Maracás Menchen Mine in Brazil. The Canadian metals producer produced 2,616t of V2O5 during the quarter, up 101.7% from a year earlier.

The result placed Largo vanadium pentoxide output at the upper end of the company’s first-quarter expectations. It also showed a clear operational recovery from stronger ore availability and more consistent processing performance.

Largo vanadium pentoxide output is important because vanadium demand is gaining support from steelmaking, aerospace alloys, chemical catalysts and vanadium redox flow batteries. Higher Brazilian production adds supply at a time when energy storage demand is becoming a larger part of the vanadium market.

Higher Ore Volumes and Grades Lift Vanadium Production

Largo mined 852,046t of ore in the first quarter, up 90.8% from a year earlier. The effective ore grade rose to 0.48% V2O5 from 0.41% in 2025.

The higher ore grade improved plant feed quality and supported stronger recovery through the processing circuit. More consistent ore processing also helped the company convert higher mined volumes into finished vanadium pentoxide.

Sales volumes rose by nearly 4% on the year to 2,141t. Largo cited stronger vanadium demand and reduced US tariffs on Brazilian exports as key drivers behind the increase.

The company expects stronger sales in the second quarter. This reflects a lag in sales realisation and higher pricing achieved in the second half of the first quarter after the US tariff reduction.

For the vanadium market, the result points to improving supply from one of the main non-Chinese producers. That matters as buyers look for diversified sources of vanadium outside China’s large steel-linked production base.

Ilmenite and By-Products Add Resource Optionality

Largo also increased ilmenite production from January to April. Output reached about 11,500t, up 32.7% from a year earlier, while sales volumes were close to the same level.

Ilmenite provides Largo with another revenue stream linked to titanium feedstock markets. Titanium dioxide, welding consumables and titanium metal supply chains all depend on stable mineral feedstock availability.

The company also filed a request on 10 April to authorise production and sales of copper, platinum group metals, nickel and cobalt as by-products of its vanadium operations.

This step could improve resource recovery and strengthen project economics if the by-products can be recovered commercially. It would also align Largo with a wider industry trend toward extracting more value from complex ore bodies.

By-product recovery is increasingly important in critical minerals supply chains. Producers are looking to capture cobalt, nickel, PGMs and other metals where they already exist in operating systems, reducing waste and improving supply efficiency.

The Metalnomist Commentary

Largo’s first-quarter performance shows how quickly vanadium supply can improve when ore grade and plant consistency recover together. The by-product strategy could become equally important if it turns Maracás Menchen into a broader critical minerals platform.

EU Ferro-Vanadium Imports Fell in 2025 as Demand Stayed Weak

Ferro-Vanadium

EU ferro-vanadium imports declined in 2025 as weak downstream demand and an oversupplied market reduced buying across Europe’s largest consuming hubs. EU countries imported 16,694 tonnes of ferro-vanadium during the year, down 6.4% from 2024.

The decline was led by the Netherlands, Germany, and Italy, which together accounted for 66.2% of total EU ferro-vanadium imports. Lower buying in these markets shows that European steel and alloy demand remained under pressure through 2025.

EU ferro-vanadium imports are closely tied to steelmaking activity because ferro-vanadium is used to improve strength, toughness, and performance in steels. Weak demand therefore signals continued softness in construction, manufacturing, and specialty steel production.

Netherlands, Germany and Italy Drove the Import Decline

The Netherlands remained the largest EU ferro-vanadium importer, but its intake fell 15.7% on the year to 4,633 tonnes. Germany’s imports declined 14.6% to 3,162 tonnes, while Italy’s imports dropped 8.1% to 3,250 tonnes.

These reductions matter because all three markets serve important roles in European metals distribution, steelmaking, and alloy procurement. When buying slows in these countries, it usually reflects broader caution across the regional value chain.

The import decline also confirms that oversupply limited restocking appetite. Buyers had little urgency to secure additional ferro-vanadium when downstream orders remained weak and market availability stayed comfortable.

Export Flows Shifted as Austria Lost Share

Austria remained the top exporter of ferro-vanadium to other EU countries in 2025, but shipments fell sharply. Austrian exports declined 29.6% on the year to 3,414 tonnes.

The Czech Republic became the second-largest exporter into Europe, with deliveries rising 21.4% to 2,275 tonnes. This pushed it ahead of South Africa, South Korea, and the Netherlands compared with the previous year.

The shift suggests that European ferro-vanadium supply patterns are becoming more fluid. However, the broader market signal remains bearish: EU ferro-vanadium imports fell because demand was not strong enough to absorb available supply.

The Metalnomist Commentary

The ferro-vanadium market shows how alloy demand remains vulnerable when steel consumption weakens. Europe’s lower imports point to a market still waiting for a stronger industrial recovery, especially in construction, machinery, and specialty steel.

U.S. Expands Sanctions on Russia, Targeting Vanadium Supply Chain

In its continued efforts to limit Russia's revenue from the metals and mining sector, the U.S. government has introduced new sanctions specifically targeting Russia's vanadium supply chain. This latest round of sanctions, announced by the U.S. Office of Foreign Assets Control (OFAC) on Friday, impacts nearly 400 entities across multiple industries, with a particular focus on the operations connected to global steelmaker Evraz Group.

Key Facilities Targeted

The sanctions notably affect several of Evraz's critical vanadium production facilities, including the Kachkanarski Gorno Obogatitelny Kombinat (KGOK), Nizhnetagilski Metallurgicheski Kombinat (NTMK), and Vanadi Tula. These sites are essential to Russia's vanadium production, which plays a crucial role in the manufacture of high-strength steel and various other industrial applications.

Evraz's operations involve mining vanadium-bearing iron ore at KGOK and producing vanadium-rich slag as a by-product at NTMK. The Vanadi Tula facility processes this slag into vanadium pentoxide (V2O5), a key intermediary for producing high-grade ferro-vanadium and vanadium metal, both critical in industrial and aerospace applications.

Uncertain Impact on U.S. Supplies

While these sanctions are designed to disrupt Russia's vanadium supply chain, it remains uncertain how much they will affect domestic U.S. supplies. The U.S. does not directly import vanadium from Russia, and the "significant transformation" rule enforced by U.S. Customs and Border Protection allows foreign producers using Russian materials to export alloys to the U.S., provided these materials undergo substantial processing.

Concerns Over Sanctions Evasion

The OFAC statement also addressed potential concerns about sanctions evasion by Russian entities. The U.S. Treasury Department emphasized its readiness to counter "new evasion channels," which could lead to increased scrutiny over the origin of vanadium products. This is particularly critical for sectors like aerospace, where the integrity of vanadium-aluminum alloys is essential.

China's Vanadium Producers Evaluate Implications of New Rebar Standard

Chinese vanadium market participants have articulated a range of perspectives concerning the potential implications of a newly-approved mandatory standard for steel reinforcement bar (rebar), a principal downstream product. On June 25, China's State Administration for Market Regulation and Standardization Administration sanctioned the mandatory standard GB 1499.2 for steel rebar, slated to become effective on September 25. This standard was initially promulgated in 2018 as a recommended guideline.

The revised regulation stipulates that producers of rebar with vanadium content below the mandated threshold must augment their vanadium usage to comply with the standard. A 2023 survey by China's Central Iron and Steel Research Institute (CISRI) indicates that the production of non-compliant steel rebar accounts for approximately 23% of the total output.

This standard also includes the higher grade HRB600 rebar, which is anticipated to necessitate 4-5 times the vanadium content compared to HRB400, notwithstanding China's predominant production of HRB400E.

A vanadium alloy producer based in Chengde has minimized the potential for substantial demand growth following the implementation of the new standard, citing the increased adoption of alternative materials by numerous steel mills, such as high phosphate ferro-niobium, vanadium-containing pig iron, and ferro-titanium.

An executive from a leading producer in Sichuan province foresees that enhancements in the steel industry will eventually elevate vanadium demand, albeit not significantly. The rationale is that incorporating more vanadium into steel enhances its strength, thereby reducing the overall quantity of steel required in construction and, consequently, the consumption of steel rebar. Industry estimates suggest that the average vanadium consumption per tonne is 0.3 kg for HRB400 and 0.6 kg for HRB500.

In contrast, a vanadium alloy smelter in Shaanxi is optimistic about the new standard driving short-term demand growth. The smelter anticipates that prices will escalate in July as some steel mills may increase their purchases in response to the new standard. This smelter had suspended production in mid-June due to narrowing profit margins.

A source from a Chengdu-based alloy producer predicts that the vanadium market will experience a downturn during July and August due to diminished demand from the steel industry. However, the demand for vanadium is expected to recover in September with the enforcement of the new standard.

Steel mills reduced their production in mid-June due to depressed prices resulting from sluggish purchasing activity and a pessimistic demand outlook for the summer, as high temperatures and increased rainfall have impeded outdoor activities.

Meanwhile, most other market participants are adopting a wait-and-see approach as they assess the ramifications of the new rebar standard.

Western Australia Vanadium Battery Plan Targets Grid Storage and Local Supply Chain

Vanadium Battery

Western Australia vanadium battery plans are moving forward as the state government offers A$150mn to support a 50MW battery energy storage system in Kalgoorlie. The project is intended to strengthen energy security in Kalgoorlie and the Eastern Goldfields as the state exits coal-fired power.

Western Australia vanadium battery funding will be awarded through a competitive proposal process. Bids are due by 20 July 2026, with evaluation expected from July and results to be announced later in the year.

Western Australia vanadium battery proposals must also show how they will support the local vanadium supply chain. That condition gives the project industrial significance beyond electricity storage alone.

The plan connects grid reliability, renewable integration and critical minerals development. It also supports Western Australia’s wider Made in WA policy, which aims to build more local manufacturing and clean-energy supply chain capacity.

Kalgoorlie Storage Project Supports Coal Exit

The 50MW Kalgoorlie project is part of Western Australia’s transition away from state-owned coal-fired generation. The government pledged in 2022 to close all state-owned coal plants by 2030.

Several major coal units are already scheduled for closure. Synergy’s Muja C, Muja D and Collie power station will be retired in stages between 2025-26 and 2029-30.

Battery storage is expected to replace part of the capacity and flexibility lost from coal. This is critical because renewable generation requires storage assets that can manage intermittency, stabilise the grid and support peak demand.

Kalgoorlie and the Eastern Goldfields are particularly important because mining regions need reliable electricity. Power disruptions can affect processing plants, mine operations, logistics and regional industrial development.

The government expects more than 1,200MW of new generation and storage to enter the South West Interconnected System in 2025-26 and 2026-27. A further 1,000MW is expected in 2027-28.

The scale of the pipeline shows that Western Australia is not treating storage as a marginal add-on. It is becoming core infrastructure for the state’s post-coal power system.

Vanadium Supply Chain Becomes Part of Energy Policy

The request for proposals is notable because it links battery deployment with local vanadium supply chain investment. This turns the project into both an energy storage initiative and a critical minerals development tool.

Vanadium batteries are attractive for long-duration grid storage because they can offer long cycle life and are suited to stationary applications. They do not compete directly with lithium-ion batteries in every market, but they can serve grid use cases where durability and duration matter.

Western Australia has already invested heavily in battery storage. In 2023, the state awarded A$1bn to support the 500MW Collie battery energy storage system and the 200MW Kwinana battery energy storage system.

The state’s 2025-26 budget also included A$50mn for a local battery manufacturing programme under the Made in WA policy. That aligns with the new vanadium battery proposal, which asks bidders to contribute to regional, economic and community outcomes.

Federal support is also backing Western Australia’s storage buildout. Four lithium-ion battery projects are being partly underwritten through the Capacity Investment Scheme, adding 2.6GWh of storage capacity from late 2027.

This creates a mixed battery landscape. Lithium-ion will remain important for large-scale storage, but vanadium could give Western Australia a route to build a differentiated local supply chain around its own mineral base.

The strategic test will be whether the Kalgoorlie project can move beyond demonstration value. It must prove cost competitiveness, operational reliability and real local supply chain development.

The Metalnomist Commentary

Western Australia is using grid storage procurement to create demand for a local vanadium industry. That is the right industrial logic: critical mineral supply chains need committed end-use demand, not just resource potential.

US Vanadium V2O5 flake production strengthens US titanium alloy supply

US Vanadium

US Vanadium V2O5 flake production has started in Hot Springs, Arkansas. The project delivers domestic, high-purity vanadium flake for titanium alloys. As a result, US Vanadium V2O5 flake production reduces aerospace supply risk and shortens lead times.

Offtake and funding signal durable demand

US Vanadium V2O5 flake production serves planned offtake for titanium alloy makers. These buyers supply critical aerospace components. Funding support from Traxys North America and the US Defense Logistics Agency underpins early volumes. Therefore, producers can plan melts and inventories with greater confidence.

Recycling route improves cost and sustainability

The plant sources post-industrial waste to manufacture high-purity vanadium products. This circular feedstock lowers landfill impact and stabilizes input costs. Meanwhile, US Vanadium V2O5 flake production enhances traceability for defense and commercial audits. The approach aligns with Buy American and resilience goals.

Domestic flake capacity closes a strategic gap. The company is the only US producer of vanadium flake for titanium alloys. Consequently, aircraft and engine programs gain a local, compliant source.

Downstream titanium alloy demand remains firm. Aerospace backlogs and engine MRO require steady vanadium additions. As a result, consistent flake output supports melt schedules and quality targets.

Broader metals supply chains also benefit. Reliable V2O5 flake supports specialty steels and superalloys. It also positions the US for future vanadium redox flow battery growth.

The Metalnomist Commentary

This milestone tightens a fragile link in the US aerospace metals chain. Watch how sustained offtake, recycling yields, and capacity utilization translate into lower import dependence and steadier titanium alloy pricing.

Largo and Stryten Launch Storion Energy to Boost U.S. Vanadium Redox Flow Battery Market

Largo

Largo and Stryten Energy have officially formed Storion Energy, a joint venture designed to produce vanadium electrolyte for vanadium redox flow batteries (VRFBs). The collaboration aims to strengthen the U.S. long-duration energy storage (LDES) sector by reducing reliance on imported vanadium-based energy solutions.

Storion will combine Stryten’s proprietary VRFB technology with vanadium pentoxide (V₂O₅) from Largo’s Maracás Menchen Mine in Brazil, providing a reliable domestic supply of vanadium electrolyte for U.S. battery manufacturers. The venture seeks to expand VRFB adoption as an alternative to lithium-ion batteries, particularly in applications requiring extended-duration energy storage.

Reducing Costs to Compete with Lithium-Ion Batteries

One of the major challenges for VRFB deployment in Western markets is the high cost of vanadium electrolyte, which accounts for 40-50% of a VRFB system’s total cost, depending on market vanadium prices.

Storion plans to supply vanadium electrolyte at just $0.02/kWh, well below the U.S. Department of Energy’s (DOE) target of $0.05/kWh for flow batteries that provide at least 10 hours of energy storage. This cost reduction is made possible by:

• Stryten’s advanced technology for efficient electrolyte production.

• Largo’s vanadium leasing model through Largo Physical Vanadium, which helps mitigate upfront material costs.

Strategic U.S. Manufacturing Presence

Storion Energy will operate out of Alpharetta, Georgia—where Stryten’s headquarters is located—and Wilmington, Massachusetts, home to Largo Clean Energy. This dual-location setup will enable efficient production and distribution of vanadium electrolytes, enhancing domestic energy security and accelerating VRFB commercialization.

Tenindewa vanadium processing facility approval positions AVL for VRFB growth

Australian Vanadium

Australian Vanadium secured Tenindewa vanadium processing facility approval, advancing its integrated Western Australia battery supply chain. The Tenindewa vanadium processing facility approval links with AVL’s Gabanintha mine and Perth electrolyte plant. As a result, the Tenindewa vanadium processing facility approval strengthens local content for vanadium redox flow batteries (VRFBs).

What the approval enables for Australian Vanadium Project

AVL will process ore from Gabanintha and ship electrolyte from Perth. Therefore, the project connects mine, concentrator, processing and electrolyte under one plan. The deposit totals 395.4mn t at 0.77pc V2O5. A high-grade zone holds 173.2mn t at 1.09pc V2O5. This hub supports grid-scale storage manufacturing in Western Australia. Meanwhile, it reduces reliance on offshore intermediates and tolling.

VRFB demand outlook and execution risks

VRFBs suit long-duration, stationary storage for grids and renewables. However, VRFB deployment still represents under 10pc of vanadium demand. Policy support and tenders could accelerate adoption across Australia. Yet pricing, financing, and procurement cycles remain hurdles. Consequently, AVL must align ramp-up with contracted projects and offtake.

AVL plans to leverage Tenindewa to deliver consistent vanadium units. In turn, OEMs can source electrolyte with predictable chemistry and ESG provenance. Therefore, project approval improves bankability for storage developers and utilities. It also positions Western Australia as a VRFB manufacturing node.

The Metalnomist Commentary

AVL’s integrated model narrows project risk by capturing value from ore to electrolyte. The approval should help secure offtake and financing tied to utility-scale storage. Watch for grid tenders and capacity auctions that could unlock multi-year VRFB demand.

Xingtai VRFB Stack Facility Nears Start-Up as Vanadium Storage Demand Rises

Xingtai Meifan Energy Storage

Xingtai VRFB stack facility is nearing commercial start-up in Hebei province as China expands manufacturing capacity for long-duration energy storage. Xingtai Meifan Energy Storage has invested 1.25bn yuan in the 2GW stack production plant.

Xingtai VRFB stack facility development is strategically important because stack production remains one of the largest cost components in vanadium redox flow battery systems. Large-scale domestic manufacturing could further reduce costs and accelerate deployment.

Xingtai VRFB stack facility preparations are close to completion. Cutting lines for proton exchange membranes and carbon felt have entered trial operation, while installation of key equipment on the automated stack production line is in its final stage.

The plant could begin operations around the end of June, adding significant new capacity to China's already fast-growing VRFB manufacturing base.

Localised Stack Production Reduces VRFB Costs

VRFB system economics depend heavily on electrolyte and stack costs. Electrolyte accounts for around 50% of total system cost, stacks for about 30% and other components for the remaining 20%.

Historically, stack costs represented as much as 40% of total system expenditure. Greater localisation and scale in separators, bipolar plates, carbon felt and other core components have gradually reduced that share.

Xingtai Meifan's new facility reinforces this trend. Automated manufacturing and domestic sourcing can lower unit costs while improving consistency and production speed.

China has already developed a fully localised VRFB stack supply chain. Commercial deployment of 100kW-class stacks and the expansion of large energy storage projects are helping the sector move toward industrial-scale production.

This is important because VRFBs compete differently from lithium-ion batteries. They offer long cycle life, high safety and the ability to scale energy capacity separately from power capacity.

These characteristics make VRFBs particularly attractive for grid applications requiring long-duration storage rather than short-duration peak balancing.

Vanadium Demand Gains New Structural Support

Growth in VRFB deployment is creating a new source of vanadium demand outside traditional steelmaking.

China's VRFB sector is expected to consume around 40,000t of V2O5 equivalent in 2026 based on the current pipeline of planned and ongoing projects.

This demand could become increasingly important for vanadium producers. Steel remains the dominant end-use market, but energy storage offers a new structural growth channel.

Electrolyte demand is particularly relevant because VRFB systems use large quantities of dissolved vanadium. Larger storage durations require more electrolyte, meaning vanadium consumption rises with total energy capacity.

The technology's aqueous electrolyte also gives VRFBs an inherent safety advantage for stationary storage. This can be important for utilities, industrial sites and grid operators managing fire risk.

As stack costs decline, electrolyte pricing will become an even larger factor in total system economics. That could strengthen the connection between vanadium prices and the competitiveness of VRFB projects.

The Metalnomist Commentary

China's VRFB expansion is turning vanadium into an energy storage material as well as a steel alloy. If stack costs keep falling, electrolyte demand could become one of the most important new sources of structural vanadium consumption.

Pangang Resumes Vanadium Guide Prices Amid Market Rebound

Pangang Vanadium

China's largest vanadium producer, Pangang, resumed issuing its weekly vanadium guide prices on September 23, after a temporary suspension in mid-June caused by continuous drops in spot prices. The company's latest guide price for 50% grade ferro-vanadium stands at 85,000 yuan per ton (Yn170/kg or $26.21/kg for contained vanadium). For the 77% vanadium and 16% nitrogen alloy, the price is set at Yn115,000 per ton.

Pangang's previous price revision took place on June 11, when the guide price for 50% grade alloy was Yn99,000 per ton, and for the 77% vanadium and 16% nitrogen alloy, it was Yn135,000 per ton. Since launching weekly guide prices on August 1, 2016, the company has consistently adjusted prices on Mondays or Thursdays, depending on market conditions.

Market Reactions to China's Stimulus Policies Boost Alloy Prices

On September 27, alloy market prices began to rise following China's announcement of new economic stimulus policies earlier in the week. Many alloy smelters increased their offers due to reduced spot supplies and renewed demand from steel mills ahead of the October 1-7 National Day holiday. Prices for 50% grade ferro-vanadium climbed to Yn80,000-81,000 per ton, up from Yn78,000-80,000 per ton the previous day.

Pentoxide flake prices also saw an increase, reaching Yn70,500-71,000 per ton, as small and medium-sized suppliers began selling at higher prices after major Chinese suppliers, including Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong, sold out their September output.

Pangang's vanadium pentoxide equivalent production in 2023 reached 49,800 tons, marking a 6.2% increase from the previous year's output of 46,900 tons. The company’s production guidance for vanadium pentoxide equivalent this year is set at 44,100 tons. Additionally, Pangang boasts significant output capacity in titanium concentrate, titanium slag, and titanium dioxide production, further cementing its role as a key player in the global market.

Treibacher Affirms Compliance with US Sanctions on Russian Vanadium, Ensures Stable Supply of FeV and V205

Treibacher

Austrian metals producer Treibacher announced today that it had proactively ended all dealings with suppliers connected to Russian-origin vanadium prior to the latest US sanctions taking effect last week. The company confirmed its compliance with these sanctions, which aim to restrict Russian vanadium supply chains and particularly affect major steelmaker Evraz Group’s operations, including its Vanadi Tula facility producing vanadium pentoxide (V205).

The US government’s August sanctions have intensified concerns among vanadium buyers, especially for products like ferro-vanadium and vanadium-aluminium alloys, essential in aerospace titanium grades. Treibacher has faced questions from buyers uncertain about the “clean” origin of its materials. In response, Treibacher issued a public statement to reassure clients, affirming that it strictly adheres to the sanctions.

"Treibacher continues to utilise its own substantial feedstock and its extensive global supplier network to secure the supply of vanadium oxide and ferro-vanadium to its customers," the company stated, highlighting its global resource network and robust supply chain.

Since the announcement of these sanctions, some market participants have reportedly raised their offer prices to leverage the uncertainty surrounding Russian vanadium supplies.