Vanadium Flow Batteries Break Through 2 RMB/Wh, Ushering in a New Era of Commercialization
Date: 24 Sep 2025 |
Source: www.desn.com.cn, 24 September 2025
The vanadium flow battery (VFB) energy storage industry has reached a historic milestone: system costs have fallen below 2 RMB/Wh for the first time. This breakthrough signals a decisive acceleration toward large-scale commercialization of one of the world’s safest and most reliable long-duration energy storage technologies.
Backed by supportive national policies, accelerated cost reductions, and large-scale project deployments, VFB technology is now redefining the competitive landscape of China’s energy storage market.
Policy Support Drives Long-Duration Storage
In 2025, China issued a series of landmark policies highlighting long-duration storage as a cornerstone of the nation’s new power system. The National Energy Administration and related ministries emphasized innovation in flow batteries, compressed air, sodium-ion, and other storage technologies, aiming to achieve 180 GW of new energy storage by 2027 with investment exceeding 250 billion RMB.
Cost Breakthrough Below 2 RMB/Wh
On 18 September, the Baotou Bailin 100MW/400MWh grid-side energy storage project announced its procurement results: Rongke Power secured a 10MWh VFB order at 1.958 RMB/Wh, marking the first time the technology has broken through the 2 RMB/Wh threshold.
This milestone was achieved through industry-wide collaboration, from reduced costs enabled by resource and process innovations to advances in electrolyte utilization, stack design, and system integration. Analysts predict that VFB costs could fall to 1.5 RMB/Wh by 2027, with further reductions to below 1 RMB/Wh by 2030.
GWh-Scale Projects Validate Industrial Capability
VFBs are now scaling rapidly, with grid-connected capacity reaching 0.59 GW/3.32 GWh by August 2025. Landmark projects include:
- Xinjiang Changji 200MW/1GWh plant – the world’s first GWh-scale VFB project fully grid-connected.
- Leshan, Sichuan 100MW/400MWh plant – the largest in Southwest China.
- Multiple 100MW-class projects across Yunnan, Ningxia, and beyond, reinforcing VFBs as a robust solution for long-duration storage.
Technological Innovation Strengthens Competitiveness
Recent breakthroughs include high-power density stacks, advanced ion-exchange membranes, optimized electrolytes, and modular containerized systems. Institutions such as the Dalian Institute of Chemical Physics and companies like Rongke Power, Enerflow, and Star New Energy have all delivered innovations that significantly improve efficiency, reduce costs, and enhance reliability.
Towards the “Golden Era” of Flow Batteries
With costs falling, performance improving, and large-scale projects proving feasibility, VFBs are transitioning from a “potential technology” to a “mainstream choice.” Industry experts now view 2025 as the pivotal year marking the beginning of VFBs’ golden era of commercialization.