Largo Inc T.LGO

Unprecedented market conditions increase prices of BESS

[kha341]

 

Note: Li-ion batteries = By far the most common type of BESS (battery energy storage systems). 

Significant increases in battery prices due to commodity price inflation, supply chain constraints have forced California utility PG&E to increase the prices it will pay for 2GWh of battery storage projects.

“Explaining the move, PG&E said that after the contracts were executed developers brought “concerns regarding unprecedented changed market conditions which render the projects uneconomical””

https://www.energy-storage.news/unprecedented-market-conditions-force-pge-to-up-price-on-2gwh-of-battery-storage-contracts/

[ThaYoda]

Some viewers here don't have a good technical understanding. They just yap, yap, yap. Lithium is in far less supply than Vanadium worldwide, and skyrocketing prices will force customers towards flow batteries of all sorts, because demand will be significant for reliable grid storage as a result of an increasingly electricity-based world. V is the 22nd most abundant metal in the Earth's

[kha341]

We all know that VRFB are safer than Li-ion batteries which are flammable / explosive. However we also know that despite the fact that they actually come at a lower lifetime operational cost, the high upfront cost of VRFB in comparison to Li-ion's has been the main barrier to their market uptake. With the big increase in the upfront Capex investment required for Li-ion BESS  the future of

[ThaYoda]

Renting out the V for the VRFB's and storing it around the world near power grids all over. No need to build out huge capacity to store the V since the batteries are going to act as mini warehouses all over. By storing the V this way, the holding locations are diverse and subject to less natural disaster risk.