Green shoots for vanadium and VRB’s taking off
Vanadium prices ex China have ‘bottomed’ in recent months with a recent uptick for 98% flake to USD8.86 and powder to USD9.08 (Source: Mastermines). Further increases are expect in late August.
Short term lower prices have dampened retail investor sentiment but has been welcomed by the VRB industry with a surge in VRB project announcements during H1 2019. For project developers such as Vecco, the lower prices are welcome as it has stimulated the VRB market at a time of significant demand for stationary storage. Multiple Australian VRB projects have been announced in 2019 for both behind and front of meter installations.
Vanadium leasing is now offered by all the major producers in an effort to support the VRB market over the long term and bring price stability to V2O5 prices. Leasing returns a recurring cashflow to the producer or intermediary fund for leasing to VRBs at a fixed price providing certainty for new projects.