India’s USD 70 Million VRFB Market to Grow 12 Percent Annually, Says CES Report

India’s vanadium redox flow battery (VRFB) market is gaining rapid momentum, with the sector valued at around USD 70 million in 2025 and projected to grow at 12 percent annually, driven by the country’s push for long-duration energy storage to support large-scale renewable integration. According to a report by Customized Energy Solutions (CES), VRFBs are emerging as a key technology in global energy transition due to their safety, durability, and recyclability.

The global VRFB market, valued at USD 1 billion in 2024, is expected to reach USD 3 billion by 2030, with global storage capacity rising from 6 GWh in 2025 to 40 GWh by 2030. However, the report notes that vanadium electrolyte, which accounts for about 35 percent of total system cost, remains a major cost driver. Ensuring supply stability, strengthening circular business models, and increasing local value addition will be essential to unlocking further growth.

India’s long-duration energy storage demand is accelerating due to rising peak loads, renewable curtailment challenges, and supportive policy mechanisms. Recent pilot projects and government tenders highlight the growing role of VRFBs, which offer 4–12 hours of discharge and can scale beyond 24 hours through flexible tank sizing. CES Managing Director Vinayak Walimbe said India is at a crucial stage in its energy transition and that the commercialisation of advanced technologies like VRFBs will be vital for integrating renewables and ensuring grid stability, backed by strong policy support and domestic manufacturing momentum.

Domestic companies are also expanding their presence in the sector. Delectrik Systems is set to install a 3 MWh VRFB at NTPC-NETRA, serving applications ranging from commercial and industrial use to microgrids and grid-scale systems, while also exporting internationally. Singapore-headquartered VFlowTech, which has significant R&D and manufacturing operations in India, runs a 100 MWh facility and is working with IIT Delhi on vanadium extraction, with both companies targeting 1 GWh of annual production capacity in the coming years.

India’s high-temperature climate and need for safe, long-duration stationary storage make VRFBs especially well-suited for the country’s grid environment. While lithium-ion batteries continue to dominate short-duration and high-power applications, VRFBs are expected to capture a significant share of the 6–10+ hour storage segment because of their durability, scalability, and thermal stability.

India currently imports most of its vanadium from China, South Africa, and Russia, but domestic exploration is underway in Arunachal Pradesh, Odisha, and Karnataka. Collaborative efforts such as the VFlowTech–IIT Delhi initiative, which focuses on recovering vanadium from refinery waste and fly ash, could enable partial local supply by 2030, strengthening India’s long-duration storage ecosystem and reducing costs.