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.

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 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.

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.

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.

Pure Lithium Partners with Saint-Gobain to Accelerate Lithium-Metal Battery Membranes

Saint-Gobain

Strategic Collaboration Aims to Advance Next-Generation Battery Technology

US-based battery innovator Pure Lithium has partnered with Saint-Gobain Ceramics to accelerate the production of lithium-metal battery membranes. This collaboration leverages Saint-Gobain’s advanced manufacturing capabilities to commercialize cutting-edge battery separator membranes, a crucial component in next-generation lithium-metal batteries.

Boosting Lithium-Metal Anode Development

Pure Lithium will use Saint-Gobain’s production capacity and R&D expertise to scale up its membrane technology. These membranes enable the electrodeposition of lithium onto substrates to form high-performance lithium-metal anodes or function as separators within battery cells. This advancement aims to enhance energy density and battery efficiency, meeting the increasing demand for high-performance energy storage solutions.

Collaboration with E3 Lithium on Lithium-Vanadium Batteries

As part of its expansion strategy, Pure Lithium is developing a lithium-metal anode in partnership with Canadian lithium developer E3 Lithium. This initiative aligns with the company’s vision to introduce lithium metal-vanadium batteries, incorporating vanadium-based cathode materials to improve battery longevity and stability.

Paving the Way for Next-Generation Energy Storage

The partnership with Saint-Gobain Ceramics and collaboration with E3 Lithium position Pure Lithium as a key player in the future of lithium-metal battery technology. These efforts support the transition towards higher-performance energy storage for EVs, grid storage, and portable electronics.

Global Energy Storage Market Expands as China Drives Record Growth

China Energy Storage

Global energy storage market growth accelerated in 2025, with China remaining the main force behind new capacity additions and technology diversification. The country’s cumulative operating power storage capacity reached 213.3GW by the end of the year, accounting for 43% of the global total.

China energy storage growth was especially strong in new-type energy storage, which includes lithium-ion batteries and vanadium redox flow batteries but excludes pumped hydro. China’s new-type storage capacity rose to 144.7GW, representing more than two-thirds of its total storage fleet and 51.9% of global new-type installations.

The global energy storage market also became more diversified. Pumped hydro’s share of global operating capacity fell below 50% for the first time, while new-type storage expanded rapidly to 278.7GW/687.5GWh.

China Leads Storage Deployment as VRFB Projects Gain Share

China’s energy storage sector remained dominated by lithium-ion batteries in 2025. However, lithium-ion’s share slipped slightly as several large long-duration storage projects using all-vanadium redox flow battery technology came online.

This shift matters because grid storage demand is no longer only about short-duration battery systems. Longer-duration applications are gaining relevance as renewable penetration rises and power systems require more flexibility, peak shifting and grid stability.

Independent energy storage became China’s main application model, accounting for around 60% of total installed capacity. This shows that storage is increasingly being deployed as standalone grid infrastructure, not only as an accessory to solar or wind projects.

Chinese manufacturers also strengthened their global position. Sungrow, Tesla, CRRC Zhuzhou Institute, BYD and Envision Energy ranked as the world’s top five energy storage system shipment providers in 2025, highlighting the growing concentration of supply among large integrated players.

Lithium Demand Rises as Storage Becomes a Core Battery Market

The global energy storage market reached 496.2GW of cumulative operating power storage capacity by the end of 2025, up 33.3% from the previous year. New installations hit a record 123.9GW, led by China, the US and Europe, while the Middle East and Latin America gained momentum.

The US added 18.4GW/48.3GWh of new-type storage capacity in 2025, while Europe added 15.4GW/32.1GWh. These figures show that storage growth is becoming global, even though China remains the dominant scale market.

Energy storage is also reshaping battery materials demand. The sector accounted for 25% of global lithium demand in 2025, up sharply from 5% in 2020, making storage one of the most important demand drivers for lithium carbonate, lithium iron phosphate materials and battery supply chains.

Stronger storage demand helped push battery-grade lithium carbonate prices to 158,000-168,000 yuan/t at the end of March, up 120% from a year earlier. This confirms that stationary storage has moved from a secondary battery market into a major force in lithium pricing.

The Metalnomist Commentary

China’s dominance in energy storage shows how quickly battery supply chains can scale when policy, manufacturing and grid demand align. The next phase will test whether lithium, vanadium and power equipment supply can keep pace with global storage deployment.

Pure Lithium Secures $300mn EXIM Support for US-Based Lithium Metal Battery Facility

Pure Lithium Corporation

Pure Lithium has received a $300 million Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM) to support its planned industrial-scale lithium metal battery plant. If approved, the Pure Lithium EXIM loan would fall under EXIM’s “Make More in America” initiative aimed at rebuilding domestic manufacturing capacity and securing supply chains in strategic sectors like energy storage.

The proposed facility will use Pure Lithium’s proprietary “Brine to Battery” process, which directly converts brine into lithium metal anodes—eliminating graphite, cobalt, nickel, and manganese. This vertically integrated method enables a fully US-based battery supply chain, from raw material extraction to cell production. CEO Emilie Bodoin emphasized the project's potential to reshape global lithium battery sourcing models.

Disruptive Battery Chemistry Supports Strategic US Objectives

The Pure Lithium EXIM loan could accelerate commercialization of lithium metal vanadium oxide batteries, which offer higher energy density without relying on traditional cathode materials. This technology positions Pure Lithium at the forefront of post-Li-ion battery innovation, directly supporting the U.S. push for clean tech self-reliance.

Pure Lithium’s partnerships reinforce its vertically integrated vision. It sources lithium concentrate from E3 Lithium in Alberta, Canada, and collaborates with Saint-Gobain Ceramics to engineer water-blocking lithium-selective membranes—a key component in its novel extraction process.

EXIM Financing to Boost US Battery Supply Chain Resilience

EXIM’s Make More in America strategy supports projects that improve domestic industrial competitiveness in sectors facing global strategic risk. The Pure Lithium EXIM loan would directly address U.S. concerns over dependence on foreign-dominated battery material supply chains, especially China.

If finalized, the funding will catalyze Pure Lithium’s ability to scale manufacturing within U.S. borders while lowering barriers for next-generation battery adoption. This aligns with U.S. energy security goals and rising demand for alternative battery chemistries in defense, mobility, and grid storage sectors.

The Metalnomist Commentary

The Pure Lithium EXIM loan represents a critical step in reshoring advanced battery manufacturing. As supply chain risks intensify and lithium metal demand grows, projects that fuse innovation with domestic sourcing will shape the next era of U.S. battery independence.

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.

E3 Lithium and Pure Lithium Collaborate to Revolutionize Lithium Metal Battery Production

E3 Lithium

Canadian lithium developer E3 Lithium and innovative battery manufacturer Pure Lithium have signed an agreement to push the boundaries of lithium metal battery production. The two companies will design a lithium metal anode and battery pilot plant near Calgary, Alberta, leveraging lithium concentrate produced by E3.

Simplifying Lithium Battery Production

The partnership aims to evaluate the technical and economic feasibility of a full-scale lithium metal battery facility located adjacent to lithium production sites in Alberta. By merging Pure Lithium’s brine-to-battery technology with E3’s lithium brines and concentrate production, the collaboration seeks to eliminate the need for a lithium salt intermediary, streamlining the battery production process.

The companies have been working together since mid-2022, achieving a major milestone when Pure Lithium produced a lithium metal battery using E3’s lithium concentrate.

A Vision for Vertical Integration

Once the pilot project is complete, the facility is expected to produce 200kg of lithium metal anodes for lithium metal vanadium rechargeable batteries. If successful, this collaboration could lead to the development of the world’s first vertically integrated lithium metal battery technology, a groundbreaking achievement in the energy storage sector.

Driving Innovation in Alberta

This partnership could position Alberta as a hub for sustainable lithium battery production, with implications for the global battery market. As demand for high-performance batteries rises, this innovative approach could significantly impact the future of energy storage solutions.

Pure Lithium’s Acquisition Advances LVO Battery Technology

Pure Lithium

Pure Lithium, a Massachusetts-based battery manufacturer, has acquired the assets of New York-based vanadium cathode producer Dimien. This acquisition is a strategic move to further commercialize Pure Lithium's lithium metal-vanadium oxide (LVO) battery, which the company claims is safer, more cost-effective, and more efficient than traditional electric vehicle (EV) batteries.

A Safer, More Efficient Battery Technology

As part of the deal, Pure Lithium will gain access to Dimien's intellectual property, manufacturing equipment, and some personnel. Dimien is known for its zeta vanadium oxide (ZVO) cathode material, which Pure Lithium plans to pair with the lithium metal anode it is developing in collaboration with Canada-based E3 Lithium. This combination promises higher energy density and reduced fire risks compared to conventional nickel-manganese-cobalt (NMC) and nickel-manganese-aluminum (NMA) batteries.

Pure Lithium aims to streamline its production process, producing lithium metal-vanadium batteries in just 48 hours. The company is also exploring the possibility of constructing a commercial battery facility in Alberta, Canada, near E3 Lithium’s brine deposits. Financial terms and the acquisition's closing date were not disclosed.

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.

E3 Lithium and Pure Lithium Join Forces to Revolutionize Battery Production in Canada

In a move set to redefine the landscape of battery manufacturing, Canadian lithium developer E3 Lithium has entered into a collaboration with battery manufacturer Pure Lithium. The two companies have signed an agreement to advance the design and development of a cutting-edge lithium metal anode and battery pilot plant in Canada.

This new facility, to be located near Calgary, Alberta, will leverage lithium concentrate produced by E3 Lithium, utilizing it in the creation of a lithium metal anode—a critical component for next-generation batteries. The partnership aims to explore the technical and economic feasibility of establishing a commercial-scale lithium metal battery facility in proximity to Alberta's rich lithium production sites.

By integrating Pure Lithium's innovative brine-to-battery technology with E3’s established lithium brines and concentrate production, the collaboration seeks to streamline the battery production process by eliminating the need for a lithium salt intermediary. This simplification could lead to more efficient and cost-effective battery manufacturing.

E3 Lithium and Pure Lithium have been collaborating since mid-2022, during which time Pure Lithium successfully produced a lithium metal battery using E3’s lithium concentrate. The upcoming pilot project will be a significant step towards commercial production, with plans to potentially scale up to produce 200kg of lithium metal anodes for advanced lithium metal vanadium rechargeable batteries.

If the pilot proves successful, the companies intend to pursue the development of the world’s first vertically integrated lithium metal battery technology, setting a new standard in the global battery industry.

Vanadium Resources offtake deal with China Precious Asia

Vanadium

Vanadium Resources offtake deal with China Precious Asia secures a near-term path to cash flow. The two-year pact covers about 1.2mn t/yr of vanadium-rich magnetite DSO from South Africa. As a result, the Steelpoortdrift project gains commercial optionality while financing remains tight.

Terms, conditions, and near-term pivot

The agreement hinges on final pricing terms by 30 August, given no standard spot benchmark. It also requires a mining contractor and product-spec compliance by 30 November. Meanwhile, VR8 keeps talks open with other offtakers, which could unlock higher-grade ore output. Vanadium Resources offtake deal with China Precious Asia complements this parallel marketing strategy.

Market context and financing implications

Steelpoortdrift holds 680mn t at an average 0.7pc V₂O₅, supporting scale. However, the project pause and cost cuts reflect VR8’s limited cash of A$218,000 at March-end. Therefore, DSO sales aim to monetize ore while VR8 seeks a strategic equity partner. Vanadium Resources offtake deal with China Precious Asia may reduce funding risk if milestones are met.

China’s vanadium demand is accelerating on vanadium redox flow battery projects. Pangang cites 2024 consumption of 116,300t V₂O₅ equivalent, underscoring structural pull. Consequently, CPAL’s involvement aligns supply with growing energy-storage applications and traditional steel demand.

VR8 originally targeted first concentrate and flake by late 2025. Yet DSO offers a lower-capex bridge to revenues during market and funding uncertainty. If pricing and logistics crystallize, the DSO route can stabilize cash generation ahead of full development.

The Metalnomist Commentary

This offtake is a pragmatic bridge between stranded resources and market demand. Execution now turns on price discovery, contractor mobilization, and logistics discipline. If VR8 delivers milestones, CPAL’s pull could anchor a broader funding solution.

VanadiumCorp Electrolyte Approved for CellCube Vanadium Flow Batteries

VanadiumCorp

VanadiumCorp Resource, a Canadian critical minerals producer, has achieved a significant milestone as its high-purity electrolyte has been approved for use in CellCube’s vanadium flow batteries (VFBs). This development underscores the growing collaboration between VanadiumCorp and Austria-based energy storage system manufacturer CellCube, aimed at enhancing the efficiency and scalability of vanadium flow battery technology.

Collaboration and Production Expansion

Following the approval, the two companies plan to test larger quantities of VanadiumCorp’s electrolyte with CellCube’s VFBs, further strengthening their partnership. This collaboration is crucial as the demand for sustainable energy storage solutions rises globally.

To support this growing demand, VanadiumCorp is scaling up its production capabilities. Currently, the company produces 250,000 liters per year at its pilot plant in Quebec, which is sufficient to supply 4.75MWh of energy storage in VFB installations. However, this is only the beginning of a more ambitious expansion plan.

VanadiumCorp is in the early stages of developing a second plant in Quebec, with a planned initial production capacity of 4 million liters per year. The first phase of the C$20 million ($14.4 million) project is expected to significantly boost the company’s output. By 2028, VanadiumCorp aims to reach an annual production capacity of 26 million liters, enabling 500MWh of energy storage for vanadium flow batteries.

Addressing the Global ESS Market

The collaboration between VanadiumCorp and CellCube positions the companies as key players in the energy storage system (ESS) supply chain. Vanadium flow batteries are gaining traction as a preferred solution for large-scale energy storage due to their long cycle life, scalability, and ability to store energy efficiently from renewable sources like wind and solar.

VanadiumCorp has also announced its intent to seek external investment to solidify its role in the VFB supply chain, a strategic move that aligns with the increasing demand for sustainable and efficient energy storage technologies.

Future Outlook

As the energy storage industry expands, the partnership between VanadiumCorp and CellCube represents a significant step forward in meeting global renewable energy storage needs. With ambitious plans for production growth, VanadiumCorp is poised to play a central role in the evolving market for vanadium-based energy storage solutions.

Jutai Nickel Cathode Production Adds Flexibility to China’s Downstream Nickel Chain

Zhejiang Jutai Plant

Jutai nickel cathode production has started at Zhejiang Jutai’s integrated refinery in Zhoushan, adding new capacity to China’s fast-expanding downstream nickel processing sector. The facility has 30,000 t/yr of nickel cathode capacity and can use mixed hydroxide precipitate or nickel matte as feedstock.

Jutai nickel cathode production strengthens the company’s ability to respond to changing nickel market conditions. The same Zhoushan site also hosts a 100,000 t/yr nickel sulphate project that was commissioned in October 2025, giving the complex around 55,000 t/yr of nickel capacity on a metal equivalent basis.

The new operation matters because China is rapidly converting imported nickel intermediates into higher-value products. Jutai nickel cathode production shows how MHP and matte supply are reshaping the country’s refining system beyond battery chemicals alone.

MHP and Matte Supply Drive New Refining Capacity

Nickel intermediates are becoming the foundation of China’s new nickel processing model. Growing supplies of MHP and nickel matte allow refiners to produce nickel sulphate, nickel cathode, and other downstream products depending on margins and customer demand.

Zhejiang Jutai’s Zhoushan complex reflects this flexible approach. The company can switch between nickel sulphate and nickel cathode output, which gives it commercial optionality across battery materials and refined metal markets. This flexibility is important when nickel prices, sulphate demand, and stainless steel-linked sentiment move in different directions.

The development also shows how China continues to capture value from Indonesia-linked nickel flows. As MHP and matte availability expands, Chinese refiners can build more diversified processing routes and strengthen their role in the global nickel value chain.

China Nickel Cathode Output Continues to Expand

China’s nickel cathode production reached 415,000t in 2025, up 24pc from the previous year. Output is expected to keep rising in 2026 as new capacity starts up, existing plants expand, and firmer nickel prices improve production economics.

Higher LME nickel prices are also supporting the sector. The average LME cash price reached $15,150/t in 2025, while the year-to-date average climbed to $17,482/t by late February, driven partly by reduced Indonesian nickel ore supply.

Shaanxi Jutai, Zhejiang Jutai’s parent company, already has experience in battery material production. Its Xi’an complex began producing nickel sulphate in 2018 and also produces cobalt sulphate, manganese sulphate, vanadium pentoxide, and molybdenum products. This gives the group a broader platform across strategic metals used in batteries, alloys, and industrial materials.

The Metalnomist Commentary

Jutai’s Zhoushan project highlights China’s strength in processing flexibility. The country is not only adding nickel capacity; it is building assets that can shift between battery chemicals and refined metal as market conditions change.

Norge Mining Set to Acquire Europe's Largest Graphite Mine, Skaland, from MRC

Norge Mining

Norge Mining, based in London, has announced its plan to purchase Skaland Graphite, Europe's largest natural graphite mine, from Australia's Mineral Commodities (MRC). This strategic acquisition is aimed at meeting the escalating demand for battery-grade graphite, essential for the burgeoning electric vehicle market and other green technologies.

Expanding into Battery-Grade Graphite Production

Located on the island of Senja, approximately 200 kilometers from Tromsø, Norway, Skaland Graphite currently has an annual output of about 10,500 tons, primarily serving industrial customers. With this acquisition, Norge Mining not only plans to continue serving these established markets but also to expand into the production of battery-grade graphite. The company is optimistic about the potential for significant resource expansion at Skaland, with the last estimated mineral resource in 2021 showing 1.84 million tons at 23.6% total graphitic carbon.

Strategic Importance Amidst Global Supply Chain Concerns

The acquisition, expected to be finalized in the first quarter of 2025 following customary conditions and regulatory approvals, comes at a critical time. Graphite has been designated as a strategic raw material by the EU in 2023, highlighting its vital role in the green energy transition. Moreover, recent export controls on graphite by China, effective from December 2023, have underscored the urgent need to diversify supply chains and mitigate geopolitical risks. This acquisition by Norge Mining is poised to enhance Europe's graphite self-sufficiency and secure a stable supply for essential technologies.

In addition to the Skaland project, Norge Mining is actively developing several early-stage deposits in southwest Norway, which are rich in raw materials crucial for producing vanadium, phosphate, phosphorus, and titanium—further contributing to its portfolio of critical minerals.

AMG Lithium First Quarter Results Reflect Weak Prices, But Strategic Progress Continues

AMG Lithium

Lithium Concentrate Sales Drop Amid Pricing Pressure

AMG Lithium's first quarter results revealed a 22% drop in lithium concentrate sales, driven by end-2024 shipments and production testing. The Brazilian spodumene operation sold 12,167t in Q1 2025, compared to higher volumes a year earlier. The lithium unit also faced falling market prices, pushing Q1 revenue down 23% to $32mn.

Battery-Grade Production Begins in Germany

Despite revenue pressure, AMG Lithium achieved its first battery-grade lithium hydroxide output in Bitterfeld, Germany. While the firm has not yet disclosed a firm commercialization date, it confirmed that the product will soon enter the market. Meanwhile, AMG announced that its Portugal project is expected to begin lithium concentrate production by H1 2027 — marking a significant expansion step.

Parent Company Shows Strong Overall Growth

AMG Critical Materials, the parent company, posted Q1 revenue of $388mn, up 8% year-over-year. Gross profit rose by 56% to $82.6mn, fueled by stronger performance in vanadium, tantalum, and ferroalloy segments. Despite the AMG Lithium first quarter results showing weakness, the group’s broader material portfolio provided a strong financial cushion.

The Metalnomist Commentary

AMG Lithium’s Q1 slump reflects broader volatility in global lithium markets. However, the company’s move into battery-grade hydroxide and its planned Portugal expansion demonstrate long-term strategic alignment with Europe’s energy transition goals.