On 31 January, Pangang Group and Dalian Rongke Energy Storage officially signed the "2026 Annual Framework Agreement for Vanadium Energy Storage Raw Material Cooperation."

The agreement stipulates that the two parties will adopt a cooperation model of purchasing and selling ammonium polyvanadate raw materials. The total estimated volume for 2026 is 11.2kt V, which is projected to account for approximately 91.8% of the vanadium flow battery raw materials required in the Chinese market in 2025. The stated quantity excludes the raw materials required for the vanadium energy storage joint venture established by Pangang Group and Dalian Rongke, as well as other major specialised energy storage projects.

As a leading domestic vanadium industry player, Pangang Group has a long-standing and deep cooperative relationship with Dalian Rongke, a frontrunner in the vanadium redox flow battery energy storage sector. Since signing a strategic cooperation agreement in 2021, the two parties have established a stable, in-depth partnership, collaborating across multiple dimensions—including electrolyte production line construction, vanadium product sales and purchases, and joint technology R&D. Notably, the 2,000m3py vanadium electrolyte production line jointly built by the two parties in 2021 has achieved long-term stable operation.

Collaboration in vanadium product transactions between these two companies has been particularly fruitful; in early 2025, Pangang Group and Dalian Rongke signed an agreement to supply 11.2kt V of vanadium battery raw materials, with actual supply reaching 8.03kt V. The newly signed agreement follows the execution model of the 2025 agreement, with both parties separately negotiating and determining specific monthly quantities and signing monthly contracts. The final transaction volume will be based on actual settlements. Project Blue anticipates that the actual 2026 supply volume will be comparable to that of 2025.

The signing of this agreement sends a strong positive signal to the market concerning the sustained development of the vanadium redox flow battery industry. By securing stable supply, it effectively alleviates raw material supply concerns and steadies expectations throughout the industrial chain—particularly as Project Blue estimated that global demand for vanadium electrolyte reached approximately 12.2kt V in 2025. As a result, greater attention can now be directed towards reducing system costs, optimising performance, and broadening market adoption.