| Several exciting developments have taken place in the vanadium industry this month, further solidifying vanadium as a commodity driving a more sustainable and energy-efficient future.
Vanadium prices remained generally stable in June; however, we have started to observe recent price increases, especially in vanadium oxide products for aerospace and battery applications. |
| Vanadium: The Rising Star in the Energy Storage Sector In June, certain milestones and market indicators reinforced the vital role vanadium has for the energy storage landscape. One of the most significant developments was reported estimates by RBC Capital Markets (Europe) indicating a vanadium market deficit from 2025 onwards. This expected deficit is attributed to increasing demand from both the steel industry and notably, vanadium redox flow batteries (“VRFBs”), a segment we are particularly excited about. These estimates also highlight the substantial demand growth driven by new VRFB deployments in the medium term, with an expected CAGR of +14% to 2030. This trend is consistent with the increasing global focus on renewable energy and the demand for efficient, long-lasting energy storage systems. In Australia, the country's first commercial VRFB project was completed this month in South Australia, underscoring the viability and growing acceptance of vanadium-based energy solutions worldwide.
On a similar note, the U.S. Department of Energy (“DOE”) recognized long-duration energy storage as a critical technology. In a move aimed at accelerating the commercialization of long-duration energy storage, the DOE signed a memorandum of understanding with several agencies, confirming the commercial viability of non-lithium-ion battery asset classes, including VRFBs. | Meanwhile, China’s energy overhaul—a $7 trillion plan to achieve energy independence, has led to a surge in Chinese enterprises expanding into the energy storage sector. The number of companies registered as energy storage companies has more than doubled over the past three years, highlighting the explosive growth in this sector and the opportunities it presents.
| In summary, we are on the brink of a transformative era in the energy storage sector, particularly with vanadium playing a critical role. As these developments unfold, Largo Physical Vanadium (“LPV”) remains committed to leveraging these opportunities and is poised to grow alongside this burgeoning industry. |
|
|