Vanadium redox flow batteries (VRFBs) are promising energy storage systems with the potential to bridge the gap between intermittent renewable electricity generation and continuous supply of reliable electricity. The electrodes found in VRFB cells affect their energy efficiency (EE) and power density. It is important to fabricate electrodes with intriguing properties to enable VRFBs to have high performance. Herein, the abundant and cost-effective lignin is employed as the precursor to produce amorphous carbon particles after undergoing thermal decomposition treatment. The carbon particles cover the surface of carbon felt (CF). The resulting CF modified by lignin-derived carbon particles (Lignin-CF) with increased active sites and improved hydrophilicity displays superior electrochemical activity towards the VO2+/VO2+ pair than both the pristine CF and the heated bare CF. Remarkably, the VRFB consisting of Lignin-CF which acts as the positive electrode shows high performance in terms of the average EE (83.3 %) and average voltage efficiency (VE) (85.0 %) over 1000 cycles (long cycling life) for more than 16 days at 100 mA cm−2, and high power density of 1053.2 mW cm−2. It is noted that the EE and VE are comparable to the highest reported value of CF modified by carbon-based materials, aside having evidently longer cycling life. This study provides a feasible strategy for fabricating an affordable electrode for high-performance VRFBs.