This is the third in a series of newsletters filled with insights about vanadium, its market drivers, and the potential of Vanadium Flow Batteries (VFB).
Battery energy storage systems (BESS) are an essential component of the global revolution towards green energy. This is because BESS technology allows for the accelerated rollout of solar and wind power developments.
VFBs and Lithium-ion battery technology are two of the key technologies currently dominating the BESS market. Excitingly for VR8, given the unique characteristics of VFBs, they are expected to play an increasing role in the world’s energy storage mix. In this edition, we will compare the structural design, longevity, carbon footprint and environmental impact of VFB versus Lithium-Ion battery technology, as well as provide an update on internal news and activities.
Vanadium Flow Batteries Versus Lithium-Ion Batteries in Battery Energy Storage Systems
What are VFBs and Li-ion Batteries?
A VFB consists of an assembly of power cells in which two electrolytes are separated by a proton-exchange membrane. The electrodes in a VFB cell are typically carbon-based, while both electrolytes are vanadium-based. The electrolyte in the positive half-cells contains V4+ and V5+ ions, while the electrolyte in the negative half-cells consists of V3+ and V2+ ions. The electrolytes can be prepared through several processes, including dissolving vanadium pentoxide (V2O5) in sulfuric acid (H2SO4).
A Lithium-ion battery is a rechargeable battery comprised of cells in which lithium ions move from the negative electrode through an electrolyte to the positive electrode during discharge, and back when charging. Lithium-ion cells use an intercalated-lithium compound as the electrode materials, typically with graphite as the negative electrode (anode) and metal oxides (such as lithium cobalt oxide) or lithium iron phosphate as the positive electrode (cathode). Lithium-ion batteries have a high energy density and low self-discharge.
Cells can be manufactured to prioritise either energy or power density. Vanadium batteries have a lower energy density compared to lithium-ion batteries, meaning they are better for delivering a consistent amount of power over significantly longer periods. More importantly, a vanadium flow battery can handle far more charge-discharge cycles than a lithium-ion battery, making them highly durable and more suitable for long-term energy storage applications.
Reference: Battery Tech Report: Lithium-Ion vs Vanadium Redox Flow Batteries
Comparing Cell Architecture
Lithium-ion batteries store all components inside the cell, making them suited for small devices such as laptops and cell phones. They are compact, quick to heat, and respond speedily to power demands. Lithium-ion batteries are currently the main battery used in electric vehicles, because of their unmatched energy density, even though they take hours to charge.
The downside of Lithium-ion batteries for large-scale energy storage applications is the need for a vast quantity of cells, which can be relatively inefficient for storing large amounts of energy. The amount of active material that can be held inside the electrodes is limited, as thick electrodes result in shorter lifespans and reduced performance. By comparison, VFBs store energy in two electrolyte tanks connected to a stack of cells. The energy capacity of a VFB can be expanded simply by adding more solution to these tanks. The battery design makes the VFB more adaptable to larger, more demanding industrial-scale operations.
As the capacity of the VFB increases, the price per kilowatt decreases, making it a more economically viable solution.
Energy Capacity: The real differentiator of VFBs is their capacity retention. While lithium-ion batteries decay and lose capacity over time, a VFB can maintain 100% capacity for over 50 years.
Safety: VFBs are considered inherently safer than other battery technologies because their energy storage (electrolytes) is separate from the conversion device (cell stacks). Further, Lithium-ion batteries use flammable electrolytes, which are prone to “thermal runaway” during charging, while VFBs use non-flammable aqueous electrolytes. VFBs are also outfitted with emergency power delivery, which can be kept offline for extended periods.
Lifespan: VFB’s average lifespan is upwards of 50 years, which far exceeds the 15-20 years of a typical Lithium-ion battery used in stationary energy storage applications. In addition, the life span of a Lithium-ion battery can vary greatly depending on the depth of discharge and the number of charge-discharge cycles.
Sustainability Advantage: The recyclability of VFBs is a game changer for the battery industry. When a VFB needs to be replaced, the vanadium electrolyte can be reused and repurposed in other batteries, as it is already separated from the rest of the battery system. This extended lifespan and recyclable components minimise environmental impact, resulting in less mining, less emissions burned in the manufacturing process and fewer overall lifecycle emissions.
By comparison, recycling the lithium from Lithium-ion batteries can be difficult and is often not economically feasible. As a result, Lithium-ion batteries are seldom recycled which reduces their sustainability characteristics.
The adoption of VFBs is a viable stationary energy solution for governments across the globe to help achieve emission reduction targets.
Reference: Battery Tech Report: Lithium-Ion vs Vanadium Redox Flow Batteries, Vanitec
Texas A&M University Study
On 10 July 2024, Ben Rogers and Sarbajit Benerjee, from Texas A&M presented their paper titled Carbon Footprint of Vanadium Flow Batteries vs. Lithium-Ion Batteries at the 14th Vanitec Energy Storage Webinar.
Please find details of their presentation below: PowerPoint, YouTube
Vanadium Flow Battery’s New Icon In July, Vanitec launched a new icon for the Vanadium Flow Battery which is set to be adopted industry-wide. This new symbol (as shown below) represents recyclability, reusability, longevity, low carbon footprint, and signifies a unified industry.
Visit the Vanitec website for an interactive map of existing installations, factsheets, press releases, animations and more by clicking here.
VR8 Company News
Chinese Roadshow
In May, VR8 conducted a Chinese Vanadium Industry Roadshow, which involved a series of senior executive meetings throughout China with potential offtake partners, strategic equity investors, Engineering Procurement Construction (EPC) firms, EPCF (EPC +financing) firms, and financiers.
VR8 has existing Memorandums of Understanding in place with Hexiang, Enerflow, and Zhonxin, which were signed during April and May 2024, for more than 100% of production from its Phase 1 operations. During the roadshow, the VR8 team focused on securing additional potential offtake agreements, strategic equity interest, EPC and financing for its world-class Steelpoortrift Vanadium Project. VR8 continues to successfully cultivate and develop its significant pipeline of strategy equity and offtake interest as part of a comprehensive funding process which has been implemented for Steelpoortdrift.
Key Roadshow Takeaways
China is focused on the rapid deployment of large-scale VFB systems. As a result, the demand for high-quality Vanadium Pentoxide is expected to increase significantly over the next 3-5 years.
VR8’s potential offtake partners recognise its capabilities as a reliable, long-term supplier of Vanadium Pentoxide. Offtake partners noted the advantageous position of Steelpoortdrift on the global cost curve and its potential to supply 180 years’ worth of high-quality Vanadium Pentoxide at the proposed mining rates.
Dual Product Stream to Accommodate Steel and VFB Demand
In anticipation of the increase in demand for VFB energy storage systems, VR8 has elected to modify the back end of the salt-roast-leach processing plant to be able to produce two product streams. This includes 98% V2O5 for the steel market and 99.5% V2O5 for the VFB market.
Opportunities Outside the Steel & VFB Market.
In direct response to requests for supply/offtake from Chinese parties that were received during the Roadshow, VR8 is also considering alternative value-accretive production options. These options include the potential supply off ammonium metavanadate, vanadium electrolyte, vanadium nitride and ferrovanadium. Click here to read more about the Chinese Roadshow.
Figure 3: VR8’s board met with the team from Panjin Hexiang New Materials Technology Co., Ltd. as part of VR8’s ongoing Chinese Vanadium Industry Roadshow.
Conclusion
Thank you for taking the time to read the latest newsletter from VR8 on the value of Vanadium. Should you wish to read earlier editions, please click on the following links:
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References: https://capital10x.com/battery-tech-report-lithium-ion-vs-vrfbs/
