Energy Storage Growth Strengthens Long-Term Outlook for Vanadium, Says Terry Perles at Vanitec’s 16th ESC Webinar
Date: 23 Jun 2026 |
The rapid expansion of long-duration energy storage is creating significant new opportunities for the global vanadium industry, according to Terry Perles, President of TTP Squared LLC, speaking at Vanitec's 16th Energy Storage Committee (ESC) Webinar. In his presentation, Perles provided a comprehensive overview of the global vanadium market, examining supply and demand trends, the accelerating deployment of vanadium flow batteries (VFBs), supportive government policies, and the increasingly important role of energy storage alongside vanadium's traditional steel markets.
Perles explained that while steel remains the largest market for vanadium, the energy storage sector has become one of the industry's most important growth drivers. As countries continue to expand renewable electricity generation, demand for reliable, safe and long-duration energy storage is increasing rapidly, positioning vanadium flow batteries as a key technology for supporting the global energy transition.
China continues to lead the global deployment of vanadium flow batteries through ambitious policies supporting long-duration energy storage. Recent regulations reward storage systems capable of delivering electricity over extended discharge periods, while national targets call for 180 GW of new energy storage capacity by 2027, with at least 30% coming from long-duration technologies. These measures are expected to generate substantial demand for vanadium-based energy storage solutions.
The presentation highlighted the exceptional pace of growth within China's vanadium flow battery industry. During 2025, almost 1 GW (992.68 MW / 4.18 GWh) of new VFB capacity was commissioned across 36 projects, with major developments concentrated in Xinjiang, Yunnan and Gansu provinces. At the same time, manufacturers continue to expand production of vanadium electrolyte, battery stacks and other key components, with planned electrolyte production capacity approaching one million cubic metres.
Perles noted that this rapid industrial expansion reflects growing confidence in the long-term outlook for vanadium. Unlike many battery technologies, vanadium flow batteries offer long service life, high safety, unlimited cycling capability and the ability to store energy for many hours, making them particularly well suited to supporting electricity grids with increasing shares of wind and solar power.
Alongside the growth in energy storage, the presentation reviewed broader developments across the global vanadium market. Steel remains the dominant application, accounting for the majority of vanadium consumption through its use in strengthening high-performance steels for construction, infrastructure, pipelines and automotive applications. However, the continued expansion of energy storage is diversifying demand and creating an increasingly balanced market for vanadium.
Perles also reviewed global vanadium supply, noting that China remains the world's largest producer, with supply derived primarily from steelmaking co-products, primary mining operations and secondary recovery sources. Continued investment across the supply chain is helping to support both traditional steel markets and the rapidly growing energy storage sector.
Commenting on current market conditions, Perles noted that vanadium prices remain below long-term historical averages, reflecting the cyclical nature of the market. He emphasised, however, that the industry's long-term outlook is increasingly supported by the emergence of energy storage as a major new source of demand alongside its established role in steel. As investment in renewable energy continues to accelerate, vanadium redox flow batteries are expected to make an increasingly important contribution to future demand.
Concluding the presentation, Perles highlighted the powerful combination of accelerating renewable energy deployment, supportive government policies, expanding manufacturing capacity and growing investment in vanadium flow batteries. Together, these trends are strengthening the long-term outlook for vanadium and reinforcing its strategic role in the global transition to low-carbon energy systems. As electricity grids increasingly rely on renewable generation, vanadium is expected to play a vital role in delivering the safe, reliable and long-duration energy storage needed to ensure grid resilience and energy security.
Download the presentation: [Vanadium Market Update - Terry Perles, TTP Squared]
Watch the webinar recording: