JOHANNESBURG (miningweekly.com) – Despite the challenges facing the domestic steel sector, Aim-listed junior explorer Bushveld Minerals is undeterred from developing its flagship 300-million-ton Mokopane vanadium project, in the Bushveld Complex, as it sees significant potential for the use of vanadium in the steelmaking process, as well as in the energy storage potential of vanadium redox flow batteries (VRFBs).

Around 0.2% of vanadium content increased steel strength by up to 100% and reduced its weight by up to 30%.

Bushveld CEO Fortune Mojapelo further explained that vanadium demand was anchored in the “robust global steel market”, where the consumption outlook remained positive, owing to ongoing urbanisation and infrastructure build programmes in emerging markets, as well as the regulation-driven increase in the use of vanadium in steel production.

Meanwhile, a concentrated and limited supply growth profile in vanadium production would likely provide price support in the medium to long term.

“That 67% of supply is linked to coproduct steel producers processing relatively low-grade vanadium-bearing magnetite deposits, and operating under strained economics, presents significant threats to vanadium supply – a threat that is heightened by the opportunity for these steel plants to switch to cheaper haematite iron-ore (nonvanadium-bearing) feedstock imports.”

VANADIUM BATTERIES
Mojapelo explained that VRFBs had several features, such as a long lifespan of more than 20 years, the capacity for 100% discharge without performance degradation and the ability to store large quantities of energy, that made them suitable for utility-scale, stationary energy storage applications.

“Utility-scale energy storage presents a significant opportunity for vanadium upside globally, where flow batteries are forecast to supply 10% to 25% of the market.

“Africa, in particular, with a substantial power deficit, large need for off-grid electrification and reliance on diesel generation, offers a significant and immediate market for distributed generation and storage, offering a market opportunity of up to 80 GWh to 90 GWh, or $25-billion to $30-billion,” he added.

Mojapelo said that, while this was admittedly still a nascent industry, he believed it was at a critical juncture and the industry was starting to see growth.