Vanadium Co. Builds Bridges Across the Atlantic https://www.streetwisereports.com/article/2023/04/27/vanadium-co-builds-bridges-across-the-atlantic.html
Vanadium Co. Builds Bridges Across the Atlantic
Excerpt
Largo Inc. (TSX:LGO; NASDAQ:LGO) is looking to capitalize on the demand for vanadium batteries by expanding its presence in Spain and potentially in Italy, thereby establishing a foothold in Europe. The company is also looking ahead by positioning itself to take advantage of the Inflation Reduction Act in the U.S. further complementing its clean energy strategy.
Largo Inc. is a vanadium company that supplies VPURE™ and VPURE+™, its signature high-quality vanadium products. Its flagship property is a high-grade vanadium deposit at the Maracs Menchen Mine, located in Brazil. Two major pillars support Largo's business: mining vanadium and creating energy storage.
Largo and the Changing Landscape of Vanadium
Largo has announced a number of changes and new initiatives at the company recently. The first is that Largo plans on appointing a new CEO. Daniel Tellechea is currently the Interim chief executive officer / director and is focused in part on two principles: the return of normalized operations and further cost management.
We have seen large shifts in the vanadium market.," Largo commented. "In the past, battery production only comprised about 1% of the market for vanadium, but we expect that to rise to as much as 10% in 2023. The effect of this rise in demand is a steady increase in the price of vanadium."
The company is also taking steps to expand its foothold overseas in Europe. The company is currently in joint venture negotiations with Ansaldo, a major power generation and gas turbine company owned by the Italian government.
Largo is in the final stretch of installing its inaugural 6.1 MWh VRFB for Enel Green Power in Spain, where it is looking to integrate a solar farm with vanadium batteries.
It reports that it is also ideally positioned relative to the United States Inflation Reduction Act. While they are a Canadian company, its clean energy business operations are located in the United States. Due to their position in the U.S. economy, they anticipate benefiting from government funding.
Largo recently reported the results of its first quarter of operations and sales. The company produced, overall, 2,111 tons of vanadium pentoxide (V2O5) and sold, overall, 2,849 tons of V2O5 in Q1 of 2023. These results are in the upper range of the company's quarterly production guidance.
The construction of Largo's ilmenite concentration plant has gone as planned and according to schedule. Largo expects to finish commissioning by Q2 of 2023 and plans to ramp up production in Q3 of 2023. Largo Clean Energy has also persisted with the installation of its vanadium redox flow battery (VFRB) for Enel Green Power Espana in Q1 of 2023.
Last April, the company completed the membership registration for the Long Duration Energy Storage Council. Largo is still looking at opportunities in the European energy market, and discussions between the company and Ansaldo have progressed to final agreement negotiations.
According to Daniel Tellechea, the interim CEO, "I am pleased to report that we are tracking in line with our 2023 production and sales guidance as of Q1 2023. We expect to reach a number of significant milestones in 2023, including the successful delivery of the company's first VRFB system in Spain, the inauguration of its ilmenite concentration plant as well as finalizing negotiations with Ansaldo, which remain ongoing. As the vanadium sector continues to exhibit steady demand, our focus remains on delivering these milestones over the course of the year in an effort to maximize shareholder value.".,...