Fast growth of vanadium prices may hit its perspective as next important element in producing batteries, Bloomberg reports.

During last two years prices grew by more than 800% due to China’s demand for stronger steel. Besides, there are talks that vanadium could become a key metal to produce batteries that can smooth energy peaks and outages. However, taking into account such extreme price growth, this can be quite expensive.

Now steel manufacturing consumes almost all vanadium. Next month China is going to set new rules requiring use of stronger steel in construction. It means that demand for vanadium will increase.

Ferrovanadium, which is traded at the market, has to cost about $30 per kilogram, so that it will be feasible to use vanadium in batteries. The current price is $115. Experts cannot predict at the moment how much the price will grow further.