The shift from fossil fuels to electric power is gaining momentum, with supercars and private jets among the latest to transition to battery power. Ferrari’s CEO, Benedetto Vigna, recently announced the upcoming release of the company’s first all-electric vehicle, set to debut next year at a price of $500,000. Meanwhile, in 2022, aerospace startup Eviation successfully tested the first corporate-sized electric airplane, proving that a small, battery-powered passenger plane can safely cover short distances of up to 250 miles. This progress underscores the potential for battery-powered innovations in both consumer goods and heavy machinery, even as the lithium market faces challenges.
However, a different kind of battery, largely overlooked by investors, is quietly making waves in the renewable energy sector. The Vanadium Flow battery, though not suited for planes, cars, or portable devices, offers unparalleled reliability and longevity. These batteries, unlike their lithium counterparts, can last for decades, enduring up to 25,000 charge cycles over 25 years. This makes them ideal for utility-scale energy storage, particularly for solar and wind farms, where consistency and durability are crucial.
Despite their bulk and weight, Vanadium Flow batteries are perfect for stationary applications, where their long lifespan and fire-proof nature provide significant advantages over lithium-based alternatives. These batteries are expected to become the dominant technology in the renewable power storage industry, positioning the vanadium battery sector for substantial growth over the next two decades.
Interestingly, the global leader in this technology is a relatively unknown company with a market cap of just $130 million, based in a small Scottish town. Although many investors remain unaware of this company and its technology, the U.S. Department of Energy has recognized its potential, commissioning over 80 megawatts of capacity for six federally funded projects in the U.S. Given the level of attention from such a prominent entity, this company’s low valuation is unlikely to remain unnoticed for long.
The future looks promising for this niche within the rechargeable battery market, which is experiencing rapid growth. While most investors might only take notice once the company has expanded and made a significant impact, astute investors will recognize the current opportunity as potentially transformative. Now is the time to gather the facts and consider the potential rewards of investing in this burgeoning sector.
Ferro-Alloy Resources Ltd (LON:FAR) is developing the giant Balasausqandiq vanadium deposit in Kyzylordinskaya oblast of southern Kazakhstan. The ore at this deposit is unlike that of nearly all other primary vanadium deposits and is capable of being treated by a much lower cost process.
