Found this article online, written from a German perspective....

Found this article online, written from a German perspective. Interesting commentary about Germany's energy situation. The article appears to be sponsored by VR8.

https://www.finanznachrichten.de/nachrichten-2022-11/57599032-vanadium-redox-flow-batterien-in-china-nimmt-die-kommerzialisierung-fahrt-auf-176.htm

Vanadium redox flow batteries: Commercialization is picking up speed in China!
16.11.2022

Vanadium redox flow batteries are the solution for renewable energies as large storage systems. But while there is a lot of discussion in Germany about the current energy crisis, action is already being taken in China. More and more projects are now being implemented there, which will have a massive impact on vanadium demand.Germany is in the middle of an energy crisis screwed up by past governments. The one-sided dependency on Russia for gas, the hasty phase-out of nuclear power and the bureaucratic throttling of the expansion of renewable energies not only cost hundreds of billions, but also endanger the future of energy-intensive industries. Only this week it was said from the USA that Germany would no longer be an option as an investment location for a whole series of industries if the fundamental energy problems were not solved quickly.One solution is energy production from wind and solar. The wind on the coast blows intensely and there is enough sun anyway given the progressing climate changes. However, the problem of storing energy from renewable sources has always raised questions. For more than 30 years, work has been carried out on vanadium redox flow batteries, which, as large energy storage devices, represent the best solution today. They are significantly safer than lithium-ion batteries, can be charged 15,000 to 20,000 times and have a long service life. But its use in this country still seems a long way off.In other parts of the world one is further along. In principle, the commercialization and widespread application of the technology is already beginning in China. The first Chinese research institute had already developed a prototype in 1995. In 2022 there will already be massive investments. On September 20, construction of the first gigawatt vanadium energy storage system in Xinjiang Province began. It is scheduled to be connected to the power grid by the end of next year. In the province of Hunan, almost 100 million dollars are being invested in a corresponding storage facility, and connection to the grid is scheduled to take place in Dalian as early as this October. Up to 400,000 kWh can be stored there; enough to feed 200,000 residents.In addition to the construction of energy storage systems, China is also focusing heavily on expanding the processing of vanadium. This is where companies come together and expand capacities. On the raw materials side, as with lithium for the supply of electric car batteries, the country does not want to make any mistakes. About 65 percent of the demand for lithium has to be imported. Accordingly, the country's companies are involved in numerous projects around the world to secure the material. The situation is different for vanadium. China and Russia together now account for 78 percent of the global vanadium supply. Until a few years ago, China was an exporter, with 85 percent of the material going to the steel industry. But the proportion of batteries made of vanadium is expected to increase to 15 to 25 percent within a few years. And China needs the material itself and is therefore gradually being eliminated as an exporter for the world market. This is another reason why vanadium is on the list of critical metals in the EU and the USA.In many mines, however, vanadium is only a by-product. Pure vanadium deposits are few and far between on the globe. But there are. This is how Vanadium Resources developed the Steelpoortdrift project in South Africa. The Australians are already close to the finish line. A few weeks ago, the Company submitted the Definitive Feasibility Study (DFS) for mine construction and operations. Accordingly, Steelpoortdrift has a net present value of USD 1.2 billion. Overall, an annual free cash flow of 152 million US dollars is to be generated there (for the time being) over 25 years. The investment costs of 211 million US dollars can thus be earned back within 27 months. In addition, the life of the mine can be significantly extended by an additional 67 years. In addition, further income from by-products such as titanium dioxide has not been taken into account in the financial statements of DFS. Vanadium Resources estimates the cost at $3.24 per pound. The market price for vanadium in Europe has been stable above USD 7 for the past few months.Important decisions for the company will have to be made in the coming weeks. The construction still has to be financed. Potential offtake partners should play an important role in this. They would secure part of the production and thus facilitate the financing of mine construction. The timing seems perfect given the strong growth on the demand side. Especially since the West wants to reduce its dependence on raw materials from "non-friendly" countries. Vanadium Resources currently has a market value of around EUR 25 million. If the mine construction goes as planned, Vanadium Resources' stock has great potential.

All IMHO, DYOR