Largo Inc T.LGO

Opportunity for China to “steal” Bushveld Minerals?

[kha341]

So imagine the following: If the VRFB growth turned out as (or even half as) predicted by the experts / consulting firms, how extreme would the V deficit be? If so, when would the impact on V2O5 prices start to be felt? in 2025? Or how much later? 

 

However, here are my concerns:

 

1) Is there a risk that the commercialisation of VRFBs fails to materialise as forecasted (a possible downside stated by Bushveld Minerals, a primary producer of V).

2) China’s VRFB market is expected to grow at 30-50% per annum through 2030. Most of Chinese V production comes from stone coal or as a steel by-product thus sub-standard not good enough for electrolyte. Largo and Bushveld are 2 primary producers of electrolyte-ready Vanadium. Largo is vastly undervalued with a market cap of US$89.67M and Bushveld’s market cap is £26.24M (= US$32.7M). If her 5-year plan projected a massive VRFB growth, would China not want to control a large production of electrolyte-ready V? What is the chance of China doing it via V price and/or stock price manipulation to “acquire” Largo and Bushveld Minerals for a song at the expense of their shareholders? 

https://stockhouse.com/companies/bullboard/t.lgo/largo-inc?postid=35997236

 

[MikiPan]

China produces millions of liters of electrolyte from Chinese vanadium. Their vanadium is fine. Doubt China can buy a Brazilian mine that produces material that is used in US fighter jets. 

[kha341]

Why does a Chinese firm enter an off-take deal with Vanadium Resources of Australia to buy 4,000T/year of V2O5? How come Panjin Hexian prefer to buy Australian vanadium over domestic product? A traitor? https://www.miningweekly.com/article/vanadium-resources-inks-offtake-mou-with-chinese-firm-2024-04-11

[MikiPan]

I have no clue what a Vanadium Resources or Australian Vanadium are? Do they produce vanadium? or do they publish MoUs to pump their stock? 

[kha341]

Very funny? LMAO!

[ThaLuvDocta]

They, like the consulting firms, probably realize that V demand is set to outweigh China V supply, especially with the reduced China steel production and thus reduced China vanadium production. China looks to be in the entry phase of becoming a V importer. VRFB demand will only reduce supply further. In the first three quarters of 2023, VRFB demand equated to 8% of total vanadium demand, up from

[ThaLuvDocta]

Correction: "up from just 2% in 2021."