The Redox Flow Batteries Market to Reach US$9.2B in Value by 2036

As suggested in their newly updated market report "Redox Flow Batteries Market 2026-2036", IDTechEx forecasts the redox flow batteries (RFB) market to grow to US$9.2B in value by 2036, given the increasing demand for these technologies in data center and long duration energy storage (LDES) applications. This market has seen significant growth in the past two years, led predominantly by key player Rongke Power. However, several opportunities are also being grasped by other players, be this in the emerging applications for RFBs, commercialization of cheaper RFB technologies, and new programs to incentivize RFBs and long duration energy storage (LDES).

 

 

The boom in artificial intelligence (AI) technologies has caused a surge in new data center growth globally. With this comes the need to decarbonize these assets, and instead of using diesel generators, flow batteries could be used. This could be for providing uninterruptible power supply (UPS), managing volatile compute loads, and peak shaving electricity from the grid.

 

As the volume of variable renewable energy penetrating electricity grids increases, as will the need to manage longer periods of fluctuating electricity supply. This will create demand for LDES technologies, where RFBs are well suited thanks to their ability to decouple and independently scale energy capacity and power output. This is achieved through the scaling of electrolyte volumes, and cell stacks, respectively. Li-ion battery energy storage systems (BESS) cannot achieve this. Therefore, in theory, RFBs can achieve lower Capex (on a $/kWh) basis at longer durations of storage. In an energy storage market where cost reigns as the most important factor, this will be critical for future RFB success. However, as Li-ion BESS costs have continued to drop, the crossover duration-of-storage point at which some RFB chemistries become cheaper has increased.

 

 

 

 

The use of more abundant materials for electrolyte rather than vanadium, a key critical mineral, could help to facilitate cheaper RFB systems. Non-vanadium RFB chemistries could include organic, and iron-based RFB technologies, with several developers gearing to commercialize these technologies, including Quino Energy and CMBlu (organic RFB), and Saudi Aramco with Dalian Rongke Power (iron-vanadium RFB). The flow battery giant, Rongke Power, has also been responsible for deploying ~3 GWh of vanadium RFBs (VRFB) from Q3 2023 - Q2 2025 in China. This marks significant growth for the RFB market, with one of these projects even reaching 1 GWh in capacity. IDTechEx's market report further details RFB projects deployed and being planned by other key RFB and project developers, including Flexbase's future GWh-scale European flow battery project for a data center.

 

 

To aid RFB market growth, key policies and programs such as The One Big Beautiful Bill Act (OBBBA) in the US, the UK Cap & Floor Scheme, and key projects supported by the California Energy Commission (CEC) will also factor into the emergence of growing western RFB markets. For instance, several 400+ MWh VRFB technologies from Invinity Energy Systems are in contention in the UK Cap & Floor Scheme, and if successful, would lead to significant flow battery growth for the UK and Europe.

 

 

IDTechEx has also observed innovations in cell stack materials and components to improve the power density of the stack, with focus on the electrodes and bipolar plates (BPP). By increasing power density, this will improve the outlook of RFB technologies more generally as an energy storage technology. The expansion of new vanadium electrolyte manufacturing, supply partnerships and leasing business models could also help to reduce upfront cost for VRFBs to a certain degree in the medium-term.

 

 

While recent growth in redox flow battery market has been significant, it still remains much smaller compared to the Li-ion BESS market. To drive further expansion, RFB developers are likely to target emerging applications where RFBs offer advantages over Li-ion technologies, such as supporting data centers and LDES. The combination of commercializing non-vanadium RFB chemistries, advancing cell stack materials and components, developing electrolyte leasing business models, and implementing new policies and programs to encourage adoption will also be key to future market success.

 

In their new market report, "Redox Flow Batteries 2026-2036: Forecasts, Markets, Technologies and Players", IDTechEx brings the reader a holistic overview of this market, including the following information:

 

 

Market Forecasts and Analysis

 

Redox Flow Battery Market and Technology Analysis

 

Company Profiles

 

Redox Flow Battery Cell Stack Materials, Components, and Electrolytes

 

 

Redox Flow Battery Value Proposition: Policies, Programs, Applications, LDES, and Levelized Cost of Storage

 

For more information on this report, including downloadable sample pages, please visit (www.IDTechEx.com/Redoxhttp://www.IDTechEx.com/Redox}, or for the full portfolio of battery and energy storage research available from IDTechEx, see www.IDTechEx.com/Research/ES.