Vanadium Market Size, Share, Trends, & Industry Analysis Report: By Grade Type (FeV40, FeV50, FeV60, and Other), By Application, and By Region – Market Forecast, 2025–2034
- Published Date:Jun-2025
- Pages: 129
- Format: PDF
- Report ID: PM5720
- Base Year: 2024
- Historical Data: 2020-2023
Market Overview
The global vanadium market size was valued at USD 2,816.51 million in 2024, growing at a CAGR of 3.1% during 2025–2034. The growth is driven by the rising adoption of EVs, growing aerospace industry, and increasing use in energy storage.
Vanadium is a rare, hard metal used primarily to strengthen steel and improve its durability. It is also essential in producing advanced batteries and aerospace materials due to its excellent corrosion resistance and strength.
Vanadium plays a crucial role in vanadium redox flow batteries (VRFBs). The batteries are used for large-scale energy storage. They offer long cycle life, safety, and scalability, making them ideal for renewable energy integration, such as solar and wind power. The growing global focus on clean and sustainable energy solutions has increased investments in energy storage technologies, directly driving demand for vanadium. Countries pushing for greener energy grids find VRFBs essential, thereby fueling vanadium market growth.
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Many governments worldwide support renewable energy projects and infrastructure modernization through subsidies, tax incentives, and regulations. These policies promote the adoption of technologies that use vanadium, such as VRFBs and high-strength steel. Public and private investments in clean energy storage and infrastructure repair drive demand for vanadium, fostering its market growth as industries align with sustainability goals.
Industry Dynamics
Rising Adoption of Electric Vehicles
Electric vehicles (EVs) demand efficient and durable batteries to ensure performance and reliability on the road. Vanadium-based batteries provide advantages such as longer lifespan and faster charging times, making them an attractive option for EV manufacturers. Governments worldwide are promoting EV adoption to lower carbon emissions, which increases the need for advanced battery technologies. For instance, the Government of India has introduced the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme to encourage the adoption of EVs in India. This growing focus on cleaner transportation solutions directly boosts the demand for vanadium, especially for its use in battery energy storage components within EV batteries. Therefore, the rise in global EV production and consumer interest further accelerates the growth in vanadium demand.
Growth of Aerospace Industry
The aerospace industry is growing, driven by increasing air travel and rising defense budgets worldwide. According to the Aerospace Industry Association, in 2023, the US aerospace industry alone employed 2.21 million people. Demand for lighter, stronger, and more heat-resistant materials has surged to improve fuel efficiency and aircraft safety. Vanadium, often used in titanium alloys, plays a critical role in meeting these needs due to its strength, light weight, and corrosion resistance. These properties help manufacturers produce durable components that reduce aircraft weight and emissions. Expanding aerospace activities and technological advancements continue to boost the use of vanadium-based materials, reinforcing their significance and contributing to steady growth in the aerospace sector.
Segmental Insights
By Grade Type Analysis
The FeV40 grade vanadium segment is expected to witness significant growth during the forecast period, due to its balanced composition and versatile applications. This grade offers excellent strength and corrosion resistance, making it highly suitable for steel manufacturing and industrial uses. Manufacturers prefer FeV40 for producing high-quality vanadium alloys that improve metal performance while keeping costs manageable. The increasing demand for durable materials in construction, automotive, and aerospace sectors is driving the adoption of FeV40. Its reliability and effectiveness in enhancing product longevity contribute to its rising popularity, thereby driving the segment growth.
The FeV50 grade segment is expected to experience substantial growth during the forecast period, owing to its higher vanadium content and enhanced performance characteristics. This grade is favored for applications requiring superior strength, heat resistance, and durability, especially in high-end steel production and specialized alloys. The demand for FeV50 is growing as industries seek advanced materials to improve structural integrity and operational efficiency. The expanding aerospace, automotive, and energy sectors contribute to this trend, increasing the need for premium grade vanadium products. FeV50’s ability to deliver exceptional mechanical properties is further driving its demand.
By Application Analysis
The steel segment dominated with the largest share in 2024 as vanadium improves steel’s strength, toughness, and resistance to wear and corrosion, which is essential in construction, infrastructure, and automotive industries. Its addition allows for the manufacture of lighter, stronger steel products, reducing material use and enhancing fuel efficiency in vehicles. The growing global infrastructure projects and increasing automotive production sustain the high demand for vanadium in steel manufacturing. Continuous innovations in steel alloys are further driving the demand for vanadium for steel production, thereby driving the segment growth.
The energy storage segment is expected to witness significant growth during the forecast period, driven by the rising adoption of vanadium redox flow batteries (VRFBs). These batteries are ideal for large-scale renewable energy storage due to their long life, safety, and scalability. Increased investments in clean energy infrastructure and the push for grid stability boost the need for efficient storage solutions. VRFBs’ ability to support solar and wind power integration makes vanadium essential for sustainable energy development. Growing awareness of energy security and environmental concerns fuels demand, driving energy storage as a rapidly expanding segment.
Regional Analysis
The Asia Pacific vanadium market dominated with the largest share in 2024, due to rapid industrialization, infrastructure development, and expanding steel production. China, the largest steel producer globally, heavily drives vanadium demand, especially for alloying in high-strength steel. Growing investments in renewable energy and energy storage projects further boost vanadium use in the region. Countries such as Japan and South Korea also contribute through the aerospace and automotive sectors. Increasing focus on clean energy, electrification, and industrial growth in emerging economies such as Vietnam and Indonesia supports the sustained expansion of the industry in the region.
The India vanadium market is expected to witness significant growth in the coming years, driven by infrastructure growth, urbanization, and increasing steel manufacturing activities. The government’s push for renewable energy and energy storage solutions enhances demand for vanadium in battery applications. The growing automotive and construction sectors also fuel vanadium consumption for stronger steel alloys. Initiatives focused on modernizing power grids and supporting electric vehicle adoption contribute to this growth. Domestic mining activities and exploration projects aim to improve supply, reducing reliance on imports. India’s increasing industrialization and policy support further drive the industry growth in the country.
The North America vanadium market is driven by expanding renewable energy infrastructure and rising electric vehicle production. The US leads in VRFB technology development, creating strong demand for vanadium in energy storage applications. The aerospace and defense industries further drive consumption through advanced alloy manufacturing. Growth in automotive manufacturing and infrastructure renovation projects further supports vanadium use. Increased government focus on clean energy and sustainability initiatives encourages investments in vanadium-based technologies. North America’s well-established industrial base combined with innovation in battery storage and metallurgy sustains robust growth in the vanadium industry.
The Europe vanadium market is expected to grow significantly during the forecast period, driven by strong environmental regulations and a shift toward sustainable energy solutions. The region’s steel industry relies on vanadium for producing high-strength, lightweight alloys to meet efficiency standards. Investments in renewable energy, particularly wind and solar power, drive demand for vanadium redox flow batteries for grid storage. Europe’s focus on reducing carbon emissions and promoting electric vehicles increases vanadium consumption. Countries such as Germany, France, and the UK lead in adopting clean technologies and infrastructure modernization. The industry benefits from supportive policies, growing clean tech industries, and advanced manufacturing capabilities.
Key Players and Competitive Analysis
The vanadium market features a competitive landscape dominated by major players such as AMG; Aura Energy Ltd; Australian Vanadium Limited; Bushveld Minerals; EVRAZ plc; Glencore; HBIS Group; Largo, Inc.; Pangang Group Vanadium and Titanium Resources Co., Ltd.; and Vanadium Resources Limited. These companies focus on expanding production capacity, securing raw material sources, and investing in advanced extraction technologies to meet rising demand from steel manufacturing, energy storage, and aerospace industries. Strategic partnerships, acquisitions, and sustainability initiatives are common to enhance market position. Innovation in vanadium applications, particularly in battery technologies, further intensifies competition among these global players.
Australian Vanadium Limited is an Australian company based in West Perth, Western Australia, engaged in the exploration, development, and processing of vanadium and related battery materials. The company’s main asset is the Australian Vanadium Project, located in the Murchison Province, about 43 kilometers south of Meekatharra. This project contains one of the largest vanadium deposits globally, with a mineral resource of ∼395 million tonnes grading 0.77% V₂O₅, including a higher-grade portion of 173 million tonnes at 1.09% V₂O₅. AVL’s operations are divided into three segments: upstream mining and resource development, midstream production of vanadium electrolyte, and downstream involvement in energy storage systems. The upstream segment focuses on mining vanadium and producing vanadium pentoxide, which is used in steel manufacturing, chemical applications, and vanadium redox flow batteries (VRFBs). The midstream segment involves producing vanadium electrolyte, a key component for VRFBs, at a plant in Western Australia. The downstream segment managed through the subsidiary VSUN Energy, involves the distribution and sale of VRFB systems, which are used for grid-scale energy storage. Besides its main project, AVL holds exploration interests in other Western Australian sites such as the Coates Project (vanadium, platinum group elements, nickel) and the Nowthanna Hill Uranium-Vanadium Project. The company also has some activities in South Africa, but its primary focus remains on Western Australia.
Vanadium Resources Limited is an Australian company engaged in the exploration and development of vanadium resources. Established in 2017 and based in Victoria Park, Western Australia, the company holds mineral assets primarily in South Africa and Australia. Its main project is the Steelpoortdrift Vanadium Project, located in the Bushveld Geological Complex in Limpopo province, South Africa. This area is known for its significant vanadium deposits. The company owns a majority stake in the project, which includes a mine, a concentrator, and processing facilities designed to produce vanadium pentoxide (V₂O₅) flake. The planned annual production capacity is ∼19,400 tonnes of vanadium pentoxide with a purity of up to 99.5%. In addition to the South African projects, Vanadium Resources holds the Quartz Bore Project in the West Pilbara region of Western Australia, covering around 15 square kilometers. The company’s activities in both regions focus on the extraction and processing of vanadium ore to produce vanadium pentoxide for industrial use.
Key Players
- AMG
- Aura Energy Ltd
- Australian Vanadium Limited
- Bushveld Minerals
- EVRAZ plc
- Glencore
- HBIS Group
- Largo, Inc.
- Pangang Group Vanadium and Titanium Resources Co., Ltd.
- Vanadium Resources Limited
Industry Development
In March 2025, Sumitomo Electric launched a new vanadium redox flow battery with a 30-year lifespan, featuring a 15% higher energy density and 30% reduced costs. The system, unveiled at ESNA 2025, offers three storage durations up to 10 hours.
Vanadium Market Segmentation
By Grade Type Outlook (Revenue, USD Million, 2020–2034)
- FeV40
- FeV50
- FeV60
- Other
By Application Outlook (Revenue, USD Million, 2020–2034)
- Steel
- Non-Ferrous Alloys
- Chemicals
- Energy Storage
By Regional Outlook (Revenue, USD Million, 2020–2034)
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Vietnam
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
Vanadium Market Report Scope
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Report Attributes |
Details |
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Market Size Value in 2024 |
USD 2,816.51 Million |
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Market Size Value in 2025 |
USD 2,902.75 Million |
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Revenue Forecast by 2034 |
USD 3,832.90 Million |
|
CAGR |
3.1% from 2025 to 2034 |
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Base Year |
2024 |
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Historical Data |
2020–2023 |
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Forecast Period |
2025–2034 |
|
Quantitative Units |
Revenue in USD Million and CAGR from 2025 to 2034 |
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Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Industry Trends |
|
Segments Covered |
|
|
Regional Scope |
|
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global market size was valued at USD 2,816.51 million in 2024 and is projected to grow to USD 3,832.90 million by 2034.
The global market is projected to register a CAGR of 3.1% during the forecast period.
Asia Pacific dominated the market share in 2024.
A few of the key players in the market are AMG; Aura Energy Ltd; Australian Vanadium Limited; Bushveld Minerals; EVRAZ plc; Glencore; HBIS Group; Largo, Inc.; Pangang Group Vanadium and Titanium Resources Co., Ltd.; and Vanadium Resources Limited.
The steel segment dominated the market share in 2024.
The FeV40 segment is expected to witness the significant growth during the forecast period.
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