Vanadium Flow Battery Market Overview

In a deal deemed to create a potential market leader in the Vanadium Redox Flow Battery (VRB) space, US-based Avalon Battery and UK-based redT announced in March this year that the new company after completion of their proposed merger would be called Invinity Energy Systems.

The new company, with estimated valuations of around 70.95 USD million, would be using the valued manufacturing expertise of both companies to produce vanadium flow batteries that would severely challenge the existing lithium-ion technology in the evolving energy storage market scenarios. The merged company would be led by Avalon CEO Larry Zulch, as already announced in November 2019.

Vanadium redox flow batteries store energy in the form of chemical potential through the redox reaction of vanadium in different oxidation states. The batteries are often deployed in proximity to power generation grids and plants to provide electricity that stabilizes the grid performance, even in times of emergency power failure.

While the development of vanadium redox batteries as a viable alternative to traditional fossil fuel sources has gained significant traction in the recent years, the critical merger of two innovative companies operating in the same market space is being looked upon as confirmation of the fact that alternate storage solutions are just not limited to lithium-ion batteries. The globally-active entity would provide the companies opportunities for an extensive market reach while also establishing a platform that would encourage Avalon and redT to compete against key lithium-ion companies.

According to a Kansas City-based research firm, the global <a href="">Vanadium Redox Flow Battery (VRB) market</a> is estimated to reach $1,205.7 Million by 2026; growing at a CAGR of 34.4% till 2026. The rising product need in renewable energy power generation and long product service life that enhances power grid stability are the primary factors driving the market growth. The rapid response of VRFBs in cases of emergency to avoid grid failure would also influence the growth of the market during the forecast period. However, high manufacturing costs of batteries and limited product functionality might hamper the market growth. The heavy product weight and size restricts the product application to the proximity of power grids. The manufacturing cost of batteries is also quite high, with the volatile pricing structure of raw materials influencing unstable final product prices. The increasing investments in the development of renewable electricity supplies would provide lucrative opportunities for the market in the coming years. The continuous focus on the generation of electricity through renewable sources would likely improve product adoption across the globe, enabling an increase in product sales.