Hi all, hope you're enjoying the weekend. Just spent some spare time researching my portfolio, and was struck by the scale of the USA's Inflation Reduction Act. It of course has critical support for battery systems. Much commentary has focused on the Act's implications for electric vehicles. Fair enough; they are the poster children of the transition to an electrified Earth. I own one, and they are amazing. However, without green support infrastructure - primarily my home solar and battery system, and an increasing renewable-content grid, I couldn't drive it sustainably.
Here's some articles that show there is great potential for the IRA to supercharge the speed of the world's largest economy's electrification, and thus the 2020s demand for alternative battery systems to Li-ion, and their raw ingredients. While there are other types of flow battery chemistries, one of the most well developed is the vanadium flow redox battery (VFRB).
VR8 of course has a world class vanadium deposit and it's soon to arrive BFS is looking to detail how it is going to provide 12,500 ton of vanadium pentoxide to downstream producers of products such as greener steel and VFRBs (and have hinted at a potential to become a VFRB producer longer term).
US flow players in this one to set the scene: https://www.energy-storage.news/will-the-us-inflation-reduction-act-boost-demand-for-flow-batteries/#:~:text=The%20signing%20of%20the%20Inflation,into%20law%20on%2016%20August
This one shows the IRA's end user credits and incentives through such programs as the Energy Efficient Home Improvement Credit, the Residential Clean Energy Credit & High-Efficiency Electric Home Rebate Program, all of which drive demand for electrifying buildings, particularly in shifting heating and cooling off fossil fuels, and making structures more energy efficient. Underpinning these upgrades, is an increasing realisation of providing battery storage when the renewable inputs are low, to power EVs and provide energy security in times of grid instability. Golly, homeowners can claim up to $US14K! https://electrek.co/2022/08/19/us-tax-credits-rebates-climate-law/
Thirdly, this link showcases the bill's support for heavy manufacturing & electric utilities, whose clean electrification's perfect companions are long term battery storage systems such as VFRBs: www.democrats.senate.gov/imo/media/doc/summary_of_the_energy_security_and_climate_change_investments_in_the_inflation_reduction_act_of_2022.pdf
Lastly, support is similar for medium-large scale projects that suit VFRBs such as commercial buildings, community solar projects and electric cooperatives: www.whitehouse.gov/wp-content/uploads/2022/08/California.pdf
A reminder of the scale of the commitment of the climate and energy component of this bill - US$ 369 BILLION IMO best in class metrics incoming within the next month of all the vanadium producer hopefuls ... so
VR8 Price at posting:
7.1¢ Sentiment: Buy Disclosure: Held
