Vanadium mine supply is among the most concentrated of any energy-storage raw material. Per USGS Mineral Commodity Summaries (2024 actual / 2025 estimate), China produced 84,000 tonnes (71.2%), Russia 21,000 t (17.8%), South Africa 8,050 t (6.8%) and Brazil 5,190 t (4.4%). The top-three share is 96%, and the simplified HHI is around 5,500 — extremely high.

Most output is a by-product of titanomagnetite deposits; standalone vanadium mines are few. On a USGS reserves basis the picture is equally lopsided: Australia 10,000 t, China 5,800 t, Russia 5,000 t, South Africa 520 t, Brazil 94 t and the United States 50 t — though USGS distinguishes reserves from resources and gross ore weight from contained metal, so cross-country comparisons must use the same definition.

Demand: 90% steel, 5% VRFB

The demand split (USGS MCS 2025, 2024 estimate / Vanitec) is special steel 90%, VRFB 5%, chemical catalysts 3% and titanium alloys 2%. VRFB is the fast-growth segment, with its share expected to rise for large-scale renewable storage. Structural growth drivers are VRFB adoption and automotive lightweighting through high-tensile steel; cyclical drivers remain steel cycles and Chinese production.

Prices and the missing index

V2O5 (98%) averaged about 5.5 USD/lb (roughly 12 USD/kg) in 2024, down from about 7.5 USD/lb in 2023, based on USGS Mineral Commodity Summaries 2025 and China market pricing. Vanadium has no monthly price series in the World Bank Pink Sheet, so pricing must be tracked via USGS, Benchmark Mineral Intelligence and industry association primary sources.

Who builds the batteries

The chain runs from titanomagnetite mining — Pangang Group in China, Largo Inc. in Brazil, Bushveld Minerals in South Africa (in liquidation proceedings in 2025) — through V2O5 refining by Pangang, Largo, AMG and Glencore, plus recovery from steel slag, to downstream steelmakers and VRFB players including Sumitomo Electric (Japan), Rongke Power (China) and CellCube (Canada). Sumitomo Electric's 15 MW / 60 MWh VRFB in Hokkaido, operating since 2015, remains the commercial pioneer reference, while Chinese mass production is driving new vanadium demand.

Policy designation diverges

Vanadium is on the US Critical Minerals List. Under the EU Critical Raw Materials Act it is designated a Critical Raw Material (CRM) but is not among the 17 Strategic Raw Materials (SRM). Japan has not designated it a critical mineral under the Economic Security Promotion Act. That divergence shapes how much supply-chain policy support VRFB electrolyte projects can expect in each jurisdiction — and how quickly non-Chinese supply can be financed.

This article was assisted by AI analysis. Please refer to the original source for official information.