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|  Click here to read Vanadium - Making Clean Energy a Reality. What is vanadium and where does it come from? Vanadium is a soft, silvery grey, ductile transition metal that occurs naturally in about 65 different minerals and fossil fuel deposits. 98% of the world's vanadium production is sourced from vanadium-bearing magnetite found in ultramafic gabbro bodies in South Africa, north-western China, and eastern Russia. Vanadium is typically produced either from steel smelter slag, from the flue dust of heavy oil or as a byproduct of uranium mining. What is vanadium used for? Vanadium is an essential alloying element for steels and titanium, and its chemical compounds are indispensable for many industrial and domestic products and processes. About 87% of vanadium is used in the high performance steel industry and another 10% is used for titanium alloy production. Vanadium has the ability to make both steel and titanium alloys stronger and lighter, making vanadium irreplaceable in aerospace, aviation, automotive, shipping and construction. Vanadium also has a role in the advancement of battery technology. Vanadium has proven to be effective at combining with Lithium-ion batteries to significantly improve their performance. Another battery, the Vanadium-Redox battery, has proven to be a highly powerful and efficient battery with the potential for large-scale, power grid usage. Wind, solar and geothermal powers provide useful ways to generate electricity, however due to the unpredictability of nature, there needs to be an efficient way to store that energy. The Vanadium-Redox battery is very different from typical batteries in that they have a lifespan of tens of thousands of cycles, are non-toxic, can be charged and discharged over and over, and can absorb or release large amounts of electricity at a moment's notice. Due to these unique characteristics, the Vanadium-Redox battery proves to be the only battery capable of connecting to power grids, effectively removing the unpredictability of renewable energy. What is the future of vanadium exploration? Demand for vanadium is expected for grow at a compound annual rate of 7.8% thorough to 2015, fuelled by continuing strong world demand and tightening global supply. Global production has been disrupted by power shortages in South Africa, one of the top three producers of vanadium, that look set to continue for a number of years and which have lead to the cancellation of some growth projects. Several factors that will continue to influence the demand for vanadium include: - China, which currently consumes almost 40% of world steel production, is increasing its demand for steel that contains vanadium. - There have also been several economic stimulus packages announced around the world being used to fund infrastructure projects, resulting in an increased demand for steel, and therefore, vanadium. - High-strength low-alloy steel production has outpaced crude steel production by 21.6% year over year since 2006. - With the U.S. pledging to double its renewable energy production within the next three years and other governments close to similar commitments, there will be in increase in demand for the Vanadium-Redox battery in power-grid usage. Overall, the consumption of vanadium is anticipated to increase as demand for stronger and lighter steel and titanium alloys grows as well as the demand for new battery applications rises worldwide. How is vanadium traded? Unlike many other commodities, vanadium does not trade on the open market, instead buyers and sellers negotiate privately. Prices are published by independent market consultants. | | ||