Vanadium in 2019, page-53

ABOUTVANADIUM

Vanadium isa hard, silvery grey, ductile and malleable speciality metal with a resistanceto corrosion, good structural strength and stability against alkalis, acids andsalt water. The elemental metal is rarely found in nature.

 

The mainuse of vanadium is in the steel industry where it is primarily used in metalalloys such as rebar and structural steel, high speed tools, titanium alloysand aircraft.

 

Theaddition of a small amount of vanadium can increase steel strength by up to 100%and reduces weight by up to 30%.

 

Vanadiumhigh-carbon steel alloys contain in the order of 0.15 to 0.25% vanadium whilehigh-speed tool steels, used in surgical instruments and speciality tools,contain in the range of 1 to 5% vanadium content.

 

Globaleconomic growth and increased intensity of use of vanadium in steel indeveloping countries will drive near term growth in vanadium demand.

 

An emergingand likely very significant use for vanadium is the rapidly developing energystorage (battery) sector with the expanding use and increasing penetration ofthe vanadium redox batteries (“VRB’s”).

 

VRB’s are arechargeable flow battery that uses vanadium in different oxidation states tostore energy, using the unique ability of vanadium to exist in solution in fourdifferent oxidation states.

 

VRB’sprovide an efficient storage and re-supply solution for renewable energy –being able to time-shift large amounts of previously generated energy for lateruse – ideally suited to micro-grid to large scale energy storage solutions(grid stabilisation).

 

Some of theunique advantages of VRB’s are:

 

• Alifespan of 20 years with very high cycle life (up to 20,000 cycles) and nocapacity loss,

• Rapidrecharge and discharge,

• Easilyscalable into large MW applications,

• Excellentlong-term charge retention,

• Improvedsafety (non-flammable) compared to Li-ion batteries, and

• Candischarge to 100% with no damage.

 

Globaleconomic growth and increased intensity of use of vanadium in steel indeveloping countries will drive near term growth in vanadium demand.

 

The globalvanadium market has been operating in a deficit position for the past fiveyears (source: TTP Squared Inc), with a forecast deficit of 9,700 tonnes in2017.

 

As aresult, vanadium inventories have been in steady decline since 2010 and theyare forecast to be fully depleted in 2017 (source: TTP Squared Inc).

 

Significantproduction declines in China and Russia have exacerbated this situation, withfurther short-term production curtailment expected in China because of potentialmine closures resulting from environmental restrictions and the banning of theimport of vanadium slag.

 

Thetightening supplies of vanadium are resulting in a global shortage, with pricesappreciating dramatically since mid-2017, with the vanadium pentoxide priceshave increased further in 2018 to more than US$19/lb V2O5, from a low of lessthan US$4/lb V2O5 in early 2017”. Vanadium price will be increasing during 2019 to 2025 based on demand and supply during this period.