Largo Inc T.LGO

battery contract

[skidie11]

does anyone know the number of pounds of vanadium in the new battery which we have contract for?

[st_esteban]

as per this article https://www.vanadiumcorp.com/news/archived-articles/are-lower-vanadium-prices-triggering-a-wave-of-giant-new-vrfb-developments/ "About 9.89 tonnes of V2O5 is used per MWh of storage. See the ‘suburb-sized’ Dalian battery? It would use almost 8000 tonnes of V2O5 for a 800MWh installation." Therefore 6.1MW will use about 60 tonnes.  This assumes that

[Awarded]

Your 60 tonnes for 6.1 MWh correspond with my calculations. My notes from the battery day presentation says that each kWh requires 21 pounds of Vanadium. Thus, each 1 MWh requires 21,000 pounds and 6.1 MWh is 128,100 pounds.  When that is divided by 2204 pounds per tonne, it equates to 58.1 tonnes. Note: In Q2, Largo produced 3,070 tonnes of flake and powder.  

[skidie11]

thanks awarded and esteban for info.  looks like we could build 5 units per quarter if we were to use all of our production in batteries is that right?

[st_esteban]

3000tonnes/60tonnes = 50

[Awarded]

To give further context, on the battery day conference, they said their projections for LCE sales were: 2022: 40 MWh (= about 840,000 lbs. Vanadium). 2023: 180 MWh (= about 3,780,000 lbs. Vanadium) 2024: 460 MWh (= about 9,660,000 lbs. Vanadium) 2025: 920 MWh (= about 19,230,000 lbs. Vanadium) 2026: 1,400 MWh (= about 29,400,000 lbs. Vanadium) On the conference call, they said that Vanadium

[kha341]

[kha341]

So the total sales must be 1,400 MWH up to and including 2026. Right? Meaning: 2022 sales = 40 MWh 2023 sales = 140 MWh for a total of 180 MWh (= 40 + 140) 2024 sales = 280 MWh for a total of 460 MWh (= 180 + 280) 2025 sales = 460 MWh for a total of 920 MWh (= 460 + 460) 2026 sales = 480 MWh for a total of 1400 MWh (= 920 + 480) So the plan is that we will have in total 1400 MWH

[Awarded]

Kha.  You may be right that the 1400 MWh figure for 2026 is cumulative.  It is certainly unclear.  I still think that 1400 MWh is the level of sales for 2026.  At 2:08 of the battery day presentation, Paulo talks about the ramp up in sales.  He talks about 180 in 2023, 460 in 2024, etc. He does not talk about 180 by 2023, 460 by 2024, etc.   However, that could

[kha341]

If the numbers were not cumulative then the total sales would be 3,000 MWh up to and including 2026. Meaning we would be leasing out about 63,000,000 lbs (~29,000 T) of V2O5 in 2026. And if 2027 (and subsequent years) had the same level of sales (1,400 MWh) as 2026 then at least all of our V2O5 production would be dedicated to VRFB from 2026 onward. Just a reality check.