What is Vanadium?
Vanadium has been a known metal since 1801 but many of the ways the material is used are much more recent.
It is collected as a byproduct from mining other metals and minerals, including uranium, sandstone, coal, and oil. One of the metal’s most common uses is steel alloys. Vanadium helps make steel stronger.
Right now, 91% of the vanadium produced goes towards steel alloys but it does have many other uses. For instance, it plays an important role in nuclear reactors.
The versatile substance also makes an appearance as a ceramics pigment and in certain medications.
Vanadium may be included in treatments for everything from diabetes to high cholesterol. However, what makes this material extremely attractive right now is its use in batteries.
New Uses for Vanadium
Vanadium has been used in the battery cathodes of implanted defibrillators for some time, but recent research is finding new uses for the material in renewable energy.
The metal could be used in the battery cathodes of electric vehicles, and it can help make windows smarter. Specifically, the unique properties of the metal can retain heat in the winter and block heat in the warmer months.
However, this magic substance also has a place in power.
Vanadium Redox Flow Batteries (VRFBs) are non-flammable, reusable, and easily scaled. They offer uninterrupted power supply and have a lifespan of 20 years or more. This combination of factors makes the batteries good for a variety of sustainable energy opportunities, including solar, microgrid, wind, and microgrid uses.
“The beauty of the vanadium redox battery is that you can charge and discharge it at the same time, something that can’t be done with a lithium battery,” says Robert Friedland, founder of Ivanhoe Mines.
“With a vanadium redox flow battery, you can put solar power and wind power into the battery, and you can put excess grid power into the battery at night, and at the same time you can have a stable output into the grid.”
Are Vanadium Stocks Valuable for Your Portfolio?
Most of the vanadium in the world comes from China. The country has the highest reserves of vanadium in the world. China produces 40,000 metric tons of the stuff every year.
Russia is the next prominent producer of vanadium, with 18,000 metric tons, followed by South Africa with 9,100 metric tons. These countries have obvious import issues and tariffs to consider.
Vanadium batteries also deserve some discussion. They have many pros to offer, but they are also enormous compared to other battery options.
Their size makes them better suited for stationary applications, like industry, as opposed to electric vehicles.
Of course, that’s not to say that vanadium won’t figure in the energy markets going forward. The substance has too many advantages to be ignored and the stationary energy market is booming.
It is expected to increase eightfold from 2017 to 2026. Vanadium could see some real growth as that industry develops.