India’s VRFB Market Set for 12% Annual Growth: CES Report Highlights Push Toward Long-Duration Energy Storage

The global Vanadium Redox Flow Battery (VRFB) market, valued at approximately USD 1 billion in 2024, is projected to triple to USD 3 billion by 2030, driven by the accelerating global energy transition and the rising need for long-duration energy storage (LDES) solutions to strengthen grid resilience.

According to a new report by Customized Energy Solutions (CES), India’s VRFB sector is evolving rapidly from pilot projects to early-stage commercialisation. Valued at around USD 70 million in 2025, the country’s market is expected to expand at a robust annual growth rate of 12%, propelled by India’s increasing renewable energy capacity and growing demand for grid-stabilizing storage technologies.

CES, an energy advisory and services firm active across global electricity markets, noted that the global VRFB market potential could rise from 6 GWh in 2025 to 40 GWh by 2030. However, the cost of vanadium electrolyte—comprising nearly 35% of total system cost—remains a key challenge. The report emphasized that stabilizing vanadium supply chains, promoting circular business models, and localizing value addition will be critical for scaling the technology.

Regions leading the LDES adoption are supported by strong policy frameworks and grid modernization goals, with India emerging as a key growth hub due to ambitious renewable targets, peak demand challenges, and curtailment issues. Recent government tenders and pilot initiatives underscore the growing role of long-duration storage in India’s energy future.

“India is at a pivotal moment in its energy transition, and the rapid commercialisation of advanced battery technologies including VRFB will be crucial for integrating renewables and ensuring grid reliability. With strong policy backing and local manufacturing momentum, India is poised to become a global leader in long-duration energy storage,” said Vinayak Walimbe, Managing Director, Customized Energy Solutions.

India’s energy storage landscape is diversifying beyond lithium-ion technologies through policy interventions such as the Critical Minerals Strategy 2023 and dedicated tenders supporting advanced storage projects. Domestic innovators are driving this momentum: Delectrik Systems is manufacturing VRFBs and plans to install a 3 MWh VRFB system at NTPC-NETRA, while Singapore-headquartered VFlowTech operates a 100 MWh manufacturing facility in India and collaborates with IIT Delhi on domestic vanadium extraction initiatives.

Both firms are targeting 1 GWh annual production capacity in the near term, reinforcing India’s ambitions to establish itself as a global manufacturing hub for next-generation battery technologies.

Experts note that India’s high ambient temperatures and the need for safe, long-duration, stationary storage make VRFBs particularly suited for local conditions. While lithium-ion batteries will continue to dominate short-duration and high-power use cases, VRFBs are expected to gain traction in the 6–10+ hour storage segment, owing to their superior durability, scalability, and thermal stability.

Currently, India imports most of its vanadium from China, South Africa, and Russia. However, ongoing efforts aim to localize supply, with the Geological Survey of India (GSI) identifying deposits in Arunachal Pradesh, Odisha, and Karnataka. Collaborations such as VFlowTech–IIT Delhi are exploring vanadium recovery from refinery waste and fly ash, supporting the National Energy Storage Mission’s goal of partial localization of vanadium supply by 2030.

These developments collectively position India to play a defining role in the global long-duration energy storage landscape, advancing its journey toward a resilient, renewable-powered future.