Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

India’s USD 70 Million VRFB Sector Set for 12 % Annual Growth, Finds CES Study

India’s vanadium redox flow battery (VRFB) market is expanding steadily, with its valuation estimated at around USD 70 million in 2025 and an expected annual growth rate of 12 percent. A new report by Customized Energy Solutions (CES) highlights that this momentum is being fuelled by the country’s increasing need for long-duration energy storage to support large-scale renewable integration.

Globally, the VRFB market—worth USD 1 billion in 2024—is projected to triple to USD 3 billion by 2030. Worldwide storage capacity is also expected to jump from 6 GWh in 2025 to nearly 40 GWh by the end of the decade. CES notes that the electrolyte, which accounts for roughly 35 percent of a VRFB system’s total cost, remains the biggest cost component. Strengthening supply chains, improving recycling frameworks, and increasing domestic value addition will be key to enabling more competitive pricing.

In India, the demand for long-duration storage is rising because of higher peak loads, renewable intermittency, and supportive policy interventions. With discharge durations of 4–12 hours—and scalability beyond 24 hours through adjustable tank sizing—VRFBs are gaining attention through pilot projects and emerging government tenders. CES Managing Director Vinayak Walimbe stated that India is entering a pivotal phase of its energy transition, and the commercial deployment of technologies like VRFBs will play an essential role in supporting renewable integration and grid stability.

Several domestic players are strengthening their footprint in the sector. Delectrik Systems is gearing up to deploy a 3 MWh VRFB at NTPC–NETRA, covering applications from C&I setups to microgrids and large-scale storage systems, while also expanding its export portfolio. Singapore-based VFlowTech, with strong R&D and manufacturing operations in India, operates a 100 MWh facility and is collaborating with IIT Delhi on vanadium extraction initiatives. Both companies aim to scale up to 1 GWh annual production in the coming years.

India’s tropical climate and the need for safe, long-duration storage solutions make VRFBs particularly suitable for the country’s grid conditions. While lithium-ion batteries will continue to dominate short-duration and high-power use cases, VRFBs are expected to secure a notable share of the 6–10+ hour storage segment due to their durability, thermal resilience, and modular scalability.

Although India currently imports most of its vanadium from China, South Africa, and Russia, exploration is underway in Arunachal Pradesh, Odisha, and Karnataka. Efforts such as the VFlowTech–IIT Delhi project—which focuses on recovering vanadium from refinery residues and fly ash—could allow India to achieve partial domestic supply by 2030, helping lower costs and strengthening the long-duration storage ecosystem.