https://www.miningweekly.com

How strong steel might kill off the next big battery metal story

23rd October 2018

By: Bloomberg

  

Font size: - +

LONDON – Vanadium’s astonishing rally is threatening its chances of being the next big battery metal.

Prices have surged more than 800% in about two years, driven by Chinese demand for stronger steel. There’s also been speculation that vanadium will become a key metal for the battery industry. But with prices now at extreme levels, it could be too expensive, according to Evraz, a Russian steelmaker and one of the top producers of vanadium.

Steelmaking accounts for almost all demand for vanadium, an obscure silvery-grey metal thought to have been used in steel as far back as the Middle Ages. China, which makes half the world’s steel, is set to implement new rules next month requiring steel used in construction to be stronger. And that means using more vanadium.

That could be a big blow to the nascent vanadium battery industry. There’s been anticipation that vanadium flow batteries – the size of shipping containers – could be used to store power and help smooth out peaks and troughs in electricity supply. But that’s unfeasible with prices this high, according to Evraz, the Russian steelmaker that’s the biggest producer of vanadium outside of China.

“Vanadium batteries do have benefits, but for market purposes the current price is too high,” said Alexander Erenburg, head of vanadium at Evraz, which counts billionaire Roman Abramovich as its largest shareholder. “I don’t believe they will take off.”

TOO EXPENSIVE
Ferrovanadium, the standard traded product, needs to be priced at about $30/kg for use in flow batteries to make sense, Erenburg said. The current price is about $115.

The rally could still have further to go.

“How far it can go, I don’t want to speculate about that,” Erenburg said. “Potentially it can go higher. The ceiling is not there.”

Edited by Bloomberg

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.074 0.108s - 88pq - 2rq
Subscribe Now