Thomas Gebauer, Chief Executive Officer: Redox One
One of Redox One’s key differentiators in the flow battery market is our multi-generational access to Chromium – one of the two key minerals in our batteries. This is thanks to our parent company Tharisa Minerals, situated on the western side of South Africa’s Bushveld Complex, which is home to more than 70% of the world’s platinum and chrome resources. Access to multigenerational raw material supply is a key differentiator for Redox One.
Iron is the world’s 4th most abundant metal and together, these two minerals (Fe-Cr) make up the electrolyte solution in our Redox One Flow Batteries. Having access to these materials, allows Redox One to take Long Duration Energy Storage (LDES) batteries to the world at a lower cost, while meeting global demand.
The Global Chromium Market
South Africa is home to the largest chromite reserves in the world, with annual production measured in local and export sales, making up two-thirds of the world’s total production (17.8 million tons out of 21.8 million tons produced in 2023). Approximately 90% of SA’s exports were imported by China, with 10-12% of those exports contributed by Tharisa Minerals and supplying, in total, roughly a quarter of the average annual chrome output into markets including China and Indonesia. Tharisa produced 1.702.6 kt of Chrome in FY24, up from 1 580.1 kt in FY23 – making FY24’s output the highest in the history of the company.
The Role of Iron in the Global Economy
The global iron supply chain is vast and complex, encompassing multiple industries, countries, and companies. According to GlobalData, South Africa was the world’s seventh-largest producer of iron ore in 2023 – and, once more, China is the world’s largest importer, followed by Japan and South Korea.
Because Iron ore is transported from mines to ports by rail, before being loaded onto ships, South Africa faces numerous challenges in exporting its product, with many producers having switched their port logistics to Mozambique.
According to a report by Wood Mackenzie, global steel demand is expected to remain strong, but the energy transition and declining hot metal production in China may limit long-term growth. They also predict that the seaborne supply of iron ore may eventually exceed demand, which could lower prices.
While exports of these minerals play a major role in the South African economy and contribute significantly to the GDP, fluctuations in the market and increased Chinese capacity – coupled with the potential oversupply and slip in demand – bode well for access to the minerals that can help Redox One revolutionise the global LDES market.