Going forward into Q4 and 2021. kha and lucid.
Great posts.
So lucid has calculated that we can get 2 electolyte plants from the iron-ore income. LOL
I'll take that any day!
Bushveld is building one for $10m so we can now build a bigger one for $20m. Terrific so Largo and Bushveld will then be in a position to supply the expected demand for the VRFBs.
Most of us are familiar with the basic components of a VRFB: 2 tanks, pumps, membrane etc. The VRFB battery will outperform Lithium in just about every way, and as long as the price of Vanadium remains below $10-$12 the VRFB can compete pricewise, and depending on the frequency of charges/discharges the VRFB will last at least 20 years, compared to Lithium's 10 years. After that time the lithium battery will be useless, while the VRFB electrolyte can be reused, and at that time the pumps and membrane may need to be replaced. After which the battery will be as good as new.
It was our own Alberto Arias speaking at the Dec 2017 Vanitec Meeting who presented a model for Vanadium or Electrolyte leasing.
Personally I really like the leasing model as Largo will always own the electrolyte which will be a steady source of income.
Here's a clip.
Note: In order to read the full Arias Leasing model info. click the link to "Thebushveldperspective.com"at the bottom of the web page. BTW the site is a wonderful source for other vanadium info. (Without a doubt it is the best source on the net. Full credit for maintaining the site goes to "Alfacomp" who posts on the Bushveld bb, and who, in my opinion is a genius.
Here is a clip from the Arias Leasing Model.
One of the key areas of discussion to arise from the meeting stemmed from a presentation by J. Alberto Arias, Founder of Arias Resource Capital Management LP in New York regarding leasing vanadium electrolyte. Vanadium is the largest cost component of the vanadium redox flow battery (VRFB) and in the past, supply and demand shocks have had significant volatility impacts on vanadium prices which could impact on the economic viability of the product going forwards. As vanadium electrolyte does not degrade, a solution, Mr. Arias explained, could be to lease the electrolyte or the vanadium for the battery’s useful life.
Please forgive all my grammar mistakes. I'm not very good at turning my thoughts into text, hopefully it is readable. LOL. I just wish I had the writing skills of lucid and kha.
Here are the links to the web pages I discussed.
and this may tickle your fancy.