Vanadium Market

Vanadium Market Overview

The global Vanadium Market size was valued at USD 3.35 billion in 2023 and is predicted to reach USD 4.47 billion by 2030 with a CAGR of 4.2% from 2024-2030.

The vanadium market involves the trade and commercial activities surrounding vanadium, a versatile transition metal primarily known for its important role in steel production. Vanadium enhances the strength, toughness, and corrosion resistance of steel alloys, making it essential for various industries, including construction, automotive, infrastructure, and others. Vanadium also plays a significant role in energy storage solutions, particularly through vanadium redox flow batteries (VRFB), that offer sustainable alternatives for energy storage in renewable systems.

Market Dynamics and Trends

The rise in steel production across the world is driving the vanadium market by boosting demand for vanadium as a key alloying element. Vanadium enhances the strength, durability, and corrosion resistance of steel, making it essential in producing high-quality steel. According to the latest report published by the World Steel Association AISBL, global crude steel production increased from 1,563 million tonnes in 2012 to 1,885 million tonnes in 2022, reflecting a growth of approximately 20.6% over the decade. As steel production rises worldwide, the need for vanadium continues to grow, supporting its crucial role in the steelmaking process.

Moreover, the expansion of the automotive industry across the world significantly drives the market by increasing the vanadium market demand for enhanced steel. Automakers increasingly rely on stronger, lighter materials to improve fuel efficiency, making vanadium a critical component in vehicle manufacturing. As per the latest report published by the European Automobile Manufacturers Association (ACEA), in 2023, global car manufacturing reached nearly 76 million units, a substantial 10.2% increase from 2022. This growth emphasizes the vital role of vanadium in supporting the automotive sector's needs, highlighting its importance in the global market.

Furthermore, the growth in renewable energy storage significantly drives the growth of the vanadium sector by elevating the demand for vanadium redox flow batteries (VRFBs). As renewable energy sources expand, the need for effective storage solutions to manage energy intermittency becomes important and VRFBs utilize vanadium electrolytes, offering advantages such as long cycle life and sustainability.

For instance, in January 2022, U.S. Vanadium expanded its facility in Hot Springs, Arkansas, aimed at producing ultra-high-purity electrolyte for Vanadium Redox Flow Batteries (VRFBs). This expansion increased their production capacity to 4 million liters per year, emphasizing the company's commitment to supporting the growing demand for renewable energy storage solutions.  As the adoption of renewable energy continues to accelerate, the reliance on vanadium for energy storage plays a pivotal role in shaping a sustainable energy future. However, high costs associated with the extraction and processing restraints the vanadium market growth.

On the contrary, the increasing focus on decarbonization across industries create ample growth opportunity in the forthcoming years. This encourages the development of advanced vanadium applications, such as in construction materials and industrial processes enhancing its significance in achieving sustainability goals.

Market Segmentations and Scope of the Study

The vanadium market report is segmented on the basis of type, application, end-user, and region. On the basis of type, the market is divided into vanadium pentoxide, vanadium ferrovanadium, aluminum-vanadium alloys, vanadium chemicals, and others. Based on application, the market is segmented into iron & steel, chemical, energy storage, titanium alloys, and others. Based on end-user, the market is divided into construction, automotive, energy, manufacturing, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and Rest of The World (Row).

Geographical Analysis

The Asia-Pacific region holds the dominant in vanadium market share during the forecast period and it is expected to maintain its dominance due to rising adoption of electric vehicles (EVs). The rise in EVs in the region drives the growth of the vanadium industry as increased EV adoption leads to greater demand for advanced battery technologies, specifically vanadium redox flow batteries (VRFBs), known for their long cycle life and safety features. According to the International Energy Agency (IEA), new electric car registrations in China surged to 8.1 million in 2023, reflecting a 35% increase compared to 2022. As the EV adoption continues to expand, the vanadium sector is well-positioned to prosper, strengthening its critical role in the shift toward sustainable energy solutions.

Moreover, the rising steel industry in the region significantly drives the vanadium market, as it is essential for producing high-strength steel, that enhances strength and durability. With increasing demand for high-strength steel in sectors such as construction, automotive, and infrastructure, the need for vanadium continues to grow. According to the latest report from the Ministry of Commerce and Industry, India ranks as the world’s second-largest producer of crude steel, achieving an output of 125.32 million tons (MT) in crude steel and 121.29 MT in finished steel during the fiscal year 2023. This growth in steel production emphasizes the expanding opportunities for vanadium in the market.

On the other hand, North America is expected to witness a steady rise in the market during the forecast period. The expansion of aerospace industry significantly drives the growth of the market in North America, as it is essential for producing high-strength, lightweight alloys used in aircraft and aerospace applications. According to a recent report by the Aerospace Industries Association, the aerospace and defence (A&D) industry generated an economic value of USD 425 billion, accounting for 1.6 percent of the total nominal GDP in the U.S. This strong economic impact emphasizes the important role of vanadium in advancing aerospace technology and its established presence in the market.

Moreover, the expanding utility-scale battery capacity in North America significantly drives the vanadium market, as it highlights the increasing demand for efficient energy storage solutions. As the region focuses on renewable energy sources, the need for reliable storage systems becomes essential to manage energy supply and demand fluctuations. As per the latest report published by the Energy Storage Summit USA, the total planned and operational utility-scale battery capacity in the U.S. reached over 16 GW by the end of 2023. An additional 15 GW is expected in 2024, followed by approximately 9 GW projected for 2025. This expansion in battery capacity not only highlights the commitment to enhancing energy storage capabilities but also drives the demand for vanadium, as it is a key component in advanced battery technologies.

Competitive Landscape

Various key players operating in the vanadium industry includes Australian Vanadium Limited, Largo Resources Ltd., Ansteel Group Corporation Limited, EVRAZ plc, HBIS GROUP, Glencore, Atlantic, TREIBACHER Industrie AG, YILMADEN HOLDING INC., Hickman Williams & Company, and others. These companies are adopting various strategies such as acquisition to remain dominant in the market.

For instance, in September 2023, Australian Vanadium (AVL) acquired Technology Metals Australia (TMT), creating a leading vanadium developer in Western Australia. This merger consolidates two adjoining projects, enhancing operational efficiency and resource management while positioning the combined entity to capitalize on the growing demand for vanadium in energy storage and high-strength steel applications.

Additionally, in August 2023, Largo Resources Inc. merged its downstream energy storage division, Largo Clean Energy (LCE), as part of a strategic review aimed at enhancing its value. This review explored various options, including partnerships with established battery companies, in response to the increasing interest in vanadium redox flow battery technology.

Key Benefits

• The report provides quantitative analysis and estimations of the vanadium industry from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of current and future vanadium market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the vanadium market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Vanadium Market Key Segments

By Type

• Vanadium Pentoxide

• Vanadium Ferrovanadium

• Aluminum-Vanadium Alloys

• Vanadium Chemicals

• Others 

By Application

• Iron & Steel

• Chemical

• Energy Storage

• Titanium Alloys

• Others x

By End-User

• Construction

• Automotive

• Energy

• Manufacturing

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

  • Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• Rest of the World (RoW)

  • Latin America

  • Middle East 

  • Africa

Key Players

• Australian Vanadium Limited

• Largo Resources Ltd.

• Ansteel Group Corporation Limited

• EVRAZ plc

• HBIS GROUP

• Glencore

• Atlantic

• TREIBACHER Industrie AG

• YILMADEN HOLDING INC.

• Hickman Williams & Company

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 3.35 Billion
Revenue Forecast in 2030	USD 4.47 Billion
Growth Rate	CAGR of 4.2% 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The global increase in steel production drives the growth of the vanadium sector. The expansion of the automotive industry increases the need for vanadium-enhanced steel in vehicle manufacturing. The growth in renewable energy storage fuels the expansion of the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.