LE System Expands Global Footprint with Large-Scale Export of Vanadium Flow Battery Materials
Date: 24 Jan 2025 |
Source: Source: Global Flow Battery Energy Storage WeChat, 23 January 2025
In a major step towards strengthening the global energy storage market, Japan's leading vanadium flow battery electrolyte manufacturer, LE System, has embarked on a large-scale export of next-generation battery materials. The company's latest shipment, consisting of 500 cubic meters of electrolyte, is being transported from its Namie plant via Yokohama Port to Valencia, Spain, where it will support a large-scale energy storage project led by a major overseas battery manufacturer.
According to reports by Japan's leading financial news outlet, Nikkei, the shipment marks a significant milestone for LE System, a subsidiary of RS Technologies, which has been steadily expanding its presence in the energy storage sector across Europe and North America.
Strengthening Global Energy Storage Solutions
Vanadium Flow Batteries (VFBs) offer a unique advantage over traditional lithium-ion batteries, boasting high safety, minimal fire risk, and long-term durability without performance degradation. While VFBs face challenges related to size and energy density, their demand is rapidly increasing for utility-scale power storage applications worldwide.
Technological Advancements Driving Expansion
LE System has been strategically positioning itself as a leading supplier of VFB electrolyte solutions, with an annual production capacity of 5,000 cubic meters at its Namie facility. The company leverages innovative technology to produce cost-effective electrolyte solutions by recovering vanadium from industrial waste generated by thermal power plants.
In a statement, LE System’s Director, Toshio Tanaka, emphasized the growing importance of energy storage amid the increasing adoption of renewable energy, stating that, "As the energy grid evolves, batteries will play a crucial role in balancing power supply and demand." The company is also planning to scale up its production capacity and establish new facilities in China to cater to the rapidly expanding market.
From Research to Market Breakthrough
LE System traces its technological expertise back to Japan’s national energy research initiatives in 1978 and has been a pioneer in VFB electrolyte development. Established in 2011, the company received significant support from the New Energy and Industrial Technology Development Organization (NEDO) and investments from the Innovation Network Corporation of Japan (now INCJ). Despite initial challenges in revenue growth, the company became a subsidiary of RS Technologies in October 2023, capitalizing on the expanding global VFB market.
RS Technologies aims to achieve 24-fold growth in VFB-related sales, targeting revenue of 24 billion yen by December 2026, compared to its 2024 targets.
A Growing Global Energy Storage Market
According to the latest projections from Yano Research Institute, the next-generation battery market, with VFBs at its core, is expected to reach a valuation of 7.27 trillion yen by 2035, representing nearly sixfold growth from 2023. The rapid proliferation of renewable energy solutions, such as solar and wind power, is driving VFB demand across North America, Europe, and China.
Government Support and Future Outlook
To further promote VFB adoption, RS Technologies is actively supporting domestic energy storage projects, including plans to construct a large-scale storage station at its semiconductor materials plant in Sanbongi, Miyagi Prefecture. In alignment with Japan’s renewable energy policies, government-backed initiatives are expected to accelerate the deployment of VFB storage solutions.
With LE System’s large-scale export efforts, vanadium flow battery technology—recognized for its safety and longevity—is set to play an increasingly vital role in the global transition to sustainable energy solutions.