Clearly typing too quickly! Vanadium Redox Flow Batteries is of course the future!
Vertical integration means - a business maximises its profits from turning the mined mineral into a valuable product. This can lead to multiple times the base ore cost in profit - just in case some new to this company are wondering what we are on about!
The first half of this year has already delivered some incredible progress for Bushveld Minerals. Many may be looking at the share price fall from the beginning of the year and think the potential has gone away.
Firstly, the Vanadium market was dominated once by the steel industry which is currently the bedrock for supply but given new legislation in China which is being implemented in the rebar standards and the more acceptable FeV price the market will become very strong again.
Then we have a new market which is about to explode, the energy storage market which to this point has been dominated by Lithium but this is changing and for stationary storage projects Vandaium Redos Flow Batteries are going to take a larger and larger share in this playing field. Make no mistake this market is massive. Solar and Wind are getting so much cheaper and they need storage to back it up. The market potential is something over 10,000 GWh for seen Energy projects, unseen is much larger still. If VRFB captures a large percentage of this, approximately 5000 mtV per 1GWh that is a massive potential. Lithium will focus on EV's and Vanadium will focus on Stationary Storage.
Our reserve and mining and process capacity will lift to 10,000 mtV per year within 3 years and likely to increase beyond 15,000 in 5 years time. With the vertical operation to mine vanadium, process vanadium, become one of the largest Vanadium Electrolyte manufacturer and joint venture VRFB assembler the upside potential is truly huge.
The coming months will further dot the 'i's and cross the 't's. Those with the patience to see this story unfold over the coming years should see a huge return on their investments, both through capital growth and dividends from profit.
There is much news expected as Pdub, NickD and others have made clear in recent posts. For research try: https://www.thebushveldperspective.com/start-here2
Do your own research, but the future is looking exceptional!
A must watch VRFB video - https://twitter.com/VanitecVanadium/status/1152204661732118528
Yes, he seems to be a good guy to have on the Bushveld Team, his experience looks very useful indeed.
I have always found LinkedIn to be a useful marketing tool and a great way to make top contacts.
I just added a comment under one of his threads as I know multiple applications for integrated technology where renewables plus energy storage will be perfect. So my contacts can see and understand this technology. They might even see the investment opportunity that we can see! It is all about sowing seeds! The market will water them!
In the meantime a strong team at Bushveld are delivering and in time investors will reap the rewards of patience in a fundamental based investment. This company oozes fundamentals and exponential growth potential!
A12DY, It is feasibly possible to massively increase production especially from the potential new projects in the US and Australia, if the companies talking about it get all their funding. It would be possible even for Bushveld Minerals to target more than 15,000 mtV with a suitably sized greenfield plant installed at Mokopane to add to the 10,000 mtV output planned from Vemetco and Vanchem.
The possibility is there to grow significantly, but not sure by 6 times. If the market grows and the market investment is there and even a new source found anything is possible.
If you look at it from our perspective, as Bushveld Minerals shareholders, then the opportunity for us to grow is massive and the upside in terms of income and profit is enormous and this is why the investment has so much upside potential beyond anything we can see today.
All in my humble opinion!
Vanadium Redox Flow Batteries
"VRFBs are well-positioned to take a significant share of the stationary energy storage market, on account of their unique features that give them an edge in large scale, stationary and long-duration energy storage applications.
These features include:
Long lifespan cycles: Ability to repeatedly charge/discharge over 35,000 times for a lifespan of over 20 years;
100% depth of discharge: Without material performance degradation is unique to VRFBs;
– Low cost per kWh when fully used at least once daily makes VRFBs today cheaper than Li-ion batteries;
Safe, with no fire or smoke risk from thermal runaway;
–100% of vanadium is re-usable upon decommissioning of the system, making VRFB’s the most sustainable major battery technology;
Scalable capacity to store large quantities of energy;
Flexibility that allows for capturing the multi-stacked values of energy storage in grid applications;
Very fast response time of less than 70ms; and
No cross-contamination, with only one battery element that is unique among flow batteries.
The lack of cross-contamination, combined with the lack of degradation of the vanadium electrolyte over the lifespan and the simple architecture of the VRFB that allows for the removal and re-use of the electrolyte, opens up the technology to innovative financial solutions such as electrolyte rental that could be a significant catalyst for adoption by reducing the upfront capital costs of these systems.
According to Navigant Research, the global stationary energy storage demand is forecast to grow to 100 GWh in annual deployments by 2027. A mere 10% share of this market by VRFBs would see VRFB deployments of 10GWh per annum by 2027. With a 1 GWh VRFB system, requiring approximately 5,500 mtV in electrolyte, more than 5% of current annual global vanadium consumption (2018 vanadium production of ~96,000 mtV), this would add 55,000 mtV to annual vanadium demand by 2027. Navigant’s own forecast calls for an 18% market share for flow batteries, which could increase demand to in excess of 80,000 mtV.
The VRFB market opportunity is attractive, not only for its diversification and strengthening of the vanadium demand profile, but also for its own commercial opportunity. There is significant economic value in the VRFB value chain to justify the downstream integration that would unlock these solutions. For these reasons, Bushveld Minerals initially established Bushveld Energy Limited to exploit the multi-billion dollar commercial opportunity that the energy storage industry presents."
These are the facts presented to us by the company and those projects in South Africa are 1.44 GWh so plenty of potentials. Let alone the 100GWh predicted by 2027 - that is 550,000 mtV or around 6 times the current annual global production.
So there is much to be excited about!
There is no doubt that the energy storage market is going to be enormous numbers for from being touted around in different articles from $50 billion to $600 billion.
The current lithium market for batteries is dominated by portable storage - phones, tools, computing devices and know EV's. These all need compact battery systems with high capacity for power. But Lithium is also in limited supply and there are many articles highlighting this - https://www.wired.co.uk/article/lithium-mining as demand increases.
The amount of Lithium required for stationary storage would be multiplied greatly with large grid-style energy storage systems. So the world needs alternatives for these systems which is why there are so many technologies in focus. Of course, the Vanadium Redox Flow Batteries have huge advantages for this market as we have all been highlighting and they are clearly going to play a huge role in the stationary storage market. There are currently 29 manufactures of VRFB that I can find and from the information, we have seen from the IFB conference last week there are projects for in China alone for 3.3GWh. There are definitely many more let alone the smaller systems being produced by Voltstorage, StorEn, and others which are harder to track.
Bushveld Energy are a primary driver in this industry and the work undertaken by Mikhail leading the Vanitec organization and his work in Africa will have a significant effect too. I have no doubt at all that the infrastructure Bushveld are developing and the additional resource streams from Vametco, Brits, and Mokopane will feed a huge amount of vanadium into this market in the form of any of the vanadium product outputs from either V203, V205 or Vanadium Electrolyte into this market as required as we will have the processing capability.
Our potential to be fiar is off the scale here and all investors will see a lot of exciting changes and growth in the months and years ahead.
Alfa, I agree 100% with your statment and your note to your accountant. I was today talking to a city investor and he thought that stationary storage was about to come of age but he was talking about Tesla. He thought and most of his colleagues see that Elon Musk has his eye on the stationary storage business and that it will much much larger than the car business.
I then asked him if he had heard of Vanadium Redox Flow Batteries? No he said, what was that so I can write it down. I then gave him a 5 minute introduction and how it works and how it has huge benefit over Lithium-Ion. He had one of those 'eureka' moments in his eyes. Wow, he said I need to talk to a few of my investor friends. This sounds interesting he said!
The moral of this story as most here know, that the world still doesn't know about this technology and its benefits. But once it does and the message gets out and the light switches on. People will see. This platform although great amongst PI's is not used much by the city and unless people meet people with bursting enthusiasm, it is just another battery technology.
I think the likes of Mikhail and others need to spread the word in multiple presentations at every energy storage show in the world and give talks and make a presence. This may be a job for someone with the same background and with the same knowledge and backed by the VRFB world.
Exciting times. Yes.
Details from the RNS:
· The Company is acquiring the Vanchem Business and 100 per cent of the outstanding shares of Ivanti for an aggregate Consideration of US$68 million.
· The Vanchem Business consists of integrated vanadium extraction and production facilities which can produce a range of vanadium products. The plant comprises:
a) A core salt-roast processing plant, including 3 roasting kilns, that produces vanadium trioxide and, vanadium pentoxide;
b) An electric smelting ferrovanadium converter, located at the Highveld Steel & Vanadium ("Highveld") site, situated approximately 10 km from the Vanchem Plant, which converts vanadium trioxide into ferrovanadium;
c) An alumino-thermic smelting facility, also located at Highveld which converts vanadium pentoxide into ferrovanadium; and
d) A vanadium chemical plant producing various vanadium chemical products.
· In addition, the Company will acquire 100 per cent of the outstanding shares of Ivanti which has economic rights to certain secondary vanadium units treated within the Vanchem Plant and generates profits from the sale of these secondary units to the Vanchem Plant.
§ For a 12 month period after completion of the Transaction, VVP will be entitled to 50 per cent of the profits made by Ivanti.
· The Consideration is payable in two stages, with:
o US$6.8 million paid on 30 April 2019, following the execution of the Agreement into an escrow account, pending completion of the Transaction ("Escrow Amount"); and
o US$61.2 million to be settled in full no sooner than 31 July 2019 and no later than 31 October 2019
Interesting post from Sihle Mdlili Director -Strategy & Corporate Services at Bushveld Miners:
We are here in Parliament National Assembly as Bushveld Minerals as the Minister’s guests at the dti budget speech debate. It’s encouraging to see the continuous emphasis across departments on beneficiation and green energy which are core elements to our story and business model in Bushveld.
UET has been there ‘long term’ partner so far but the question still remains whose technology will BE use and will it be branded as BE in association with ‘xxxx’. Built in South Africa will be key to the local markets. This news is certainly due soon as is the details on the construction of the EL plant.
Bella, One thing is certainly looking likely, and that is Largo wants to be free from Glencore to sell their vanadium to where they want to in the market place. One of the options they have once the agreement ends is to also look at the vanadium electrolyte market. Any independent vanadium miner would be foolish not to. Given that Largo was represented at the IFBF to further understand the market it makes sense. They could then even open up here own electrolyte plant.
The other point which is clear is because the VRFB market potential is massive, potentially larger than the steel market in the long term it makes sense too. Clearly, no one can say much until the Glencore supply agreement is ended. But the signs are there.
With respect to BMN supply agreements, I think there will be multiple VRFB manufacturers clambering to buy Vanadium Electrolyte from Mikhail at Bushveld Energy, so expect multiple agreements in future. Avalon is just the first.
The mutual respect between Bushveld Minerals, Largo and Australian Vanadium is clear and they will all look to have market share in geographical locations and given the worlds need for energy storage, keeping up with demand will be difficult for all of them over the next 10 to 15 years as the market multiplies exponentially.
All my opinions, but seeing what is being discussed, it makes a lot of sense. I am sure Alfa will add his opinion here too!
Then there are the 29 companies currently producing VRFB:
You can click on each logo and find out about the company. All interesting information.
Bushveld are already partnering with UET but you can be sure all these companies will be watching our development especially with respect to supply of electrolyte.
There are always interesting articles here http://www.vanitec.org/vanadium/Energy-Storage-News to catch up on VRFB technology.
You may if you look at this slide (from IFBF) see two huge VRFB both 1GWh, these are huge. One for wind power and one for Nuclear power. But if you total these projects up on the map there are 3.3GWh of projects!
That is a lot of vanadium, so the tide is changing and as China leads the way in large projects as the word gets out to why they are choosing the technology, you can be sure that soon it will be VRFB that will be the vanadium driver and the steel market in 3 to 5 years time will be secondary.
Once our friends the South African government finally give Bushveld Minerals the opportunity to develop Mokopane, expand the Bushveld Energy Electrolyte plant and start assembly of VRFB it is easy to see this really will be a Giga Business.
Don't forget that Eskom has multiple Energy Storage projects which BE will tender for, let alone the global interest in taking electrolyte for projects around the world from Bushy.
Every 200MWh of capacity in a VRFB requires 1000 tonnes of vanadium. The technology is developing fast and this week it was announced that VRFB can now expect to last up to 30 years! No loss of depth of charge and fully recyclable. No risk of fire! Lithium cannot really compete technically on benefits and life.
We know there is a lot to come from Bushveld Minerals and this company really is set to grow and so will the share price.
Have a great weekend all!
Thanks Brasi for posting the link!
For anyone wanting to understand the background work relating to Bushveld Energy and the Vanadium Redox Flow Market this report from the Internation Flow Battery Conference hosted by Vanitec would be very useful reading:
If you are wondering what VRFB are, then try this:
A market with truly huge potential that needs a lot of Vanadium!
Nice work Pal! Thanks for updating the shipment figures and all your work in tracking it is massively appreciated by the board here! I am sure your work will be appreciated with recommendations for it!