Vanadium Electrolyte Leasing To Help Achieve DOE’s Long Duration Storage Shot LCOS Goal

Synopsis

VRFB technology is a safe and reliable option to provide long-duration energy storage greater than four hours to help ensure grid stability and facilitate increased utilization of renewables for businesses and consumers across the U.S. With proper maintenance, VRFBs can last more than 20 years without its electrolyte losing storage capacity. This longevity complements the lifespan of wind and solar installations. However, the upfront cost of VRFB systems poses a significant challenge to widespread adoption.

Vanadium electrolyte production is a key cost reduction target within the manufacturing scale-up challenge. The electrolyte is infinitely recyclable, and the battery offers a near-limitless cycle life. This component typically constitutes 40 percent to 60 percent of the bill of materials cost for VRFB systems. To address this hurdle, innovative business models, like vanadium electrolyte leasing, have emerged as promising solutions to accelerate commercialization. A cost-effective domestic supply chain for vanadium electrolyte will provide the opportunity for rapid adoption of VRFB technology, which has the potential to completely replace lithium in the utility arena in the next five years.

This presentation will outline the market demand for VRFB and how electrolyte leasing models are gaining popularity by creating a win-win proposition for both consumers and suppliers.