Huailu Photoelectric Group's Full Industry Chain Layout: The Rise of the Vanadium Battery Ecology under the Policy Tailwind and Technological Revolution

- Yunnan takes the lead in转向 long-term energy storage：In July 2025, the Yunnan Provincial Energy Bureau clearly stated that future centralized shared energy storage projects will prioritize full-vanadium liquid flow batteries, and in principle, will no longer construct new lithium iron phosphate projects. The policy provides a capacity rental service for vanadium battery projects at 3 times the installed capacity, which is 68% more profitable than lithium iron phosphate projects, directly driving the economic breakthrough.  

- Sichuan to create a hundred-billion-level industrial cluster: As one of the provinces in the country to introduce provincial-level special policies for vanadium batteries, Sichuan has issued the "Implementation Plan for Promoting the High-Quality Development of the Vanadium Battery Energy Storage Industry", relying on the Panxi Vanadium Mine resources (accounting for 39% of global reserves) and a complete industrial chain, to accelerate the construction of a "Vanadium Battery Industry Corridor". In July 2025, the State-owned Assets Supervision and Administration Commission of Sichuan Province took the lead in organizing a research meeting of provincial state-owned enterprises, proposing to integrate the three elements of resources, technology, and capital, and to build a "Full Application Scenario Vanadium Battery Ecosystem".  

- National subsidy bias towards long-term technology: Shenzhen Guangming District provides up to 20% subsidy (with a ceiling of 50 million yuan) for the actual investment in flow battery projects, significantly higher than the 10% for lithium battery projects, directly aiming at the weak links in the industrial chain.  

- Installation volume soars：By the first half of 2025, China's new energy storage capacity added up to 96.5GW, surpassing pumped storage for the first time. Among them, Yunnan ranked first in the country with a new installation of 4.23GW/8.46GWh, and the gap in long-term energy storage is significant.  

- Economic driving: Yunnan's new peak-valley electricity price policy supports the "two charge and two discharge" model, extending the peak period to 6 hours and expanding the arbitrage space for long-term storage technology with a duration of more than 4 hours. Combined with the rental policy, the IRR (Internal Rate of Return) of the vanadium battery project is expected to increase to more than 12%.  

On July 24th, the China Chemical and Physical Power Source Industry Association and the Hebei Province Vanadium-Titanium Industry Association jointly held an industry conference in Chengdu, where more than 400 leading figures in the industry discussed the future of vanadium redox flow batteries.

- Revolution in Electrolyte: Sichuan Development Xingxin Vanadium Energy Company showcases short-process electrolyte preparation technology, constructing a 60,000-ton/year production line, and driving down the cost of electrolyte by 30%.  

- System Energy Efficiency Leap: The team led by Zhang Huamin from the Chinese Academy of Sciences announced that the domestic stack power density has exceeded 140mW/cm², the system energy efficiency has reached more than 85%, the cycle life has exceeded 20,000 times, and the full life cycle cost is 40% lower than that of lithium batteries.  

- Hebei: Relying on enterprises such as Chengde Vanadium-Titanium (with a capacity of 42,000 tons), a complete chain of "vanadium mine-high purity vanadium-proton exchange membrane-electro" has been formed, accounting for 40% of the national reserves.  

- Sichuan: Focusing on system integration and business model innovation, represented by Hualu Optoelectronic Group and Weilide Energy. Weilide has achieved "three charge and discharge operations a day" in the spot market, verifying the economic model of vanadium batteries.

- Formation of the Alliance: The General Assembly initiated the "Flow Battery Industry Alliance", promoting the unification of technical standards and helping enterprises to go global together.  

- Global discourse power: China's energy storage cells account for 93.2% of global shipments, vanadium batteries will replicate the lithium battery export path, and the target for the proportion of overseas markets in 2030 is increased to 40%.  

 - Leverage the strategic resource of Panxi vanadium mine in Sichuan, deepen cooperation with Pan Steel and Chuanfa Xingneng, and ensure the autonomous supply of raw materials for vanadium electrolyte.  

- Core Breakthrough: Covering the entire process of electrolyte formulation, stack design, and system integration, more than 30 patents build a technical barrier.  

- Performance Benchmark：achieve 72-hour ultra-long storage cycle, 20,000 cycle life, full life cycle cost reduction of 40%.  

- Southern Sichuan *** New Energy Equipment Manufacturing Base (to be completed in 2026), providing an integrated "设备+platform+service" solution;  

- Virtual power plant technology solves the problem of wind and solar consumption, and promotes the implementation of the source network load storage integrated demonstration area. 

- SE Asia Layout: Signed multiple island microgrid projects at the June 2025 Thailand exhibition, planning to establish a local technology service center to provide full-cycle support of "equipment + operation and maintenance".  

- Capital Path: Leverage policy synergies to accelerate the IPO process for the Science and Technology Innovation Board, aiming for a market value of over 10 billion by 2030, creating a listed platform in the vanadium battery sector.  

       Policy support, technological revolution, and ecological synergy are driving vanadium batteries from "demonstration projects" to "market-driven explosive growth". Hu Photoelectric, with the core of the full-chain autonomous control of "vanadium mine → electrolyte → battery stack → energy storage system", continues to consolidate its position as the leader in the western vanadium industry. With the release of policy dividends in Yunnan, Sichuan and other places, as well as the surge in global long-term energy storage demand, Hu's closed-loop ecology will become the "green engine" to break through the new power system in China.

        Sichuan Hualu Photoelectric Group Co., Ltd. was established in 2018, headquartered in Naxi District, Luzhou City, Sichuan Province, is a leading enterprise in the field of new energy and a practitioner of the national "double carbon" strategy. The company takes "light storage intelligent manufacturing + energy service" as its core strategy, and constructs an industry chain layout covering the entire process of photovoltaic storage EPC, full vanadium liquid storage system manufacturing, and lithium battery technology research and development. It has more than 30 core patents and international authoritative certifications (CE/CB/FCC/ROHS, etc.).

        Based on the technical system of the Chinese Academy of Sciences, the Group has built a scientific research laboratory for vanadium battery energy storage with Sichuan Institute of Chemical Industry, Light Industry University and other institutions, overcome the technical barriers of full vanadium liquid flow batteries, and achieved breakthroughs in ultra-long duration energy storage for more than 72 hours, a cycle life of more than 20,000 times, and a system energy efficiency of more than 85%. It has also filled the blank of industry intelligent manufacturing. As a core member of the energy state-owned enterprise circle, the Group has in-depth cooperation with leading enterprises such as Huawei, Longi, Wego and Sunshine, serving many large-scale projects of central enterprises, creating an "equipment + platform + service" wind, solar and storage energy interconnection ecology, and providing strong technical support for the country to build a new power system.

        In 2026, the company plans to build a new energy equipment manufacturing base in southern Sichuan, further promoting the restructuring of the global energy system. With the advantage of technological innovation and full industry chain layout, Hu Photoelectric has become a new energy technology group with growth potential in the western part of China, injecting strong power into the global energy transition and contributing to the realization of the "double carbon" goal.