SP Angel Research Note Vanadium-1 PDF
SP Angel Research Note Vanadium-1 PDF
SP Angel Research Note Vanadium-1 PDF
Price Outlook
The combined impact of recent Chinese vanadium steel standards and environmental policy
change, focusing on improving air emission standards and waste import bans (fundamental
supply of vanadium slags), has triggered significant positive price momentum with
ferrovanadium and V2O5 climbing 37% and 44% respectively year-to-date (March 2018).
We forecast a sustained global deficit resulting from a tightening supply base coupled with
robust consumption from traditional metallurgical applications and inchoate energy-
storage solutions has drawn broad vanadium prices from the multi-year lows of late 2015-
early 2016. After bottoming out two years ago, the price of Chinese FOB ferrovanadium and
vanadium pentoxide have swelled 406% and 596% respectively to 2018 highs.
V2O5 represents the most common intermediate product of purities ranging from steel-
grade at least 86% up to 99.8% via the treatment of magnetite iron ores, vanadium-bearing
slags, and secondary materials. Additional processing via aluminothermic reactions of the
V2O5 red cake yields ferrovanadium products. The three major ferrovanadium grades
include 40%V, 60%V, and 80%V.
Source: Bloomberg
1 SP Angel
Global vanadium market balance, Kt China vanadium FeV and V2O5 prices, US$/kg
(2011-2017e) (2006-2018e)
Due to illiquid market fundamentals, vanadium prices are associated with elevated
volatility, with historic prices surging during 2005 (not presented when FeV prices spiked
over US$100/kg) and 2008. In particular, the price surge of 2005 is attributed to a
significant fall in inventory as China accelerated the use of grade 3 reinforcing bars (0.03%
V) at the expense of grade 2 rebar (0% V). Revisions to the GB 1499.2-2007 construction
regulations eliminating 335MPa strength rebar with higher intensity vanadium utilisation
600MPa reinforcing bar is expected to drive consumption and therefore stimulate prices.
Meanwhile tumbling iron ore prices back into the $60s/t on record swelling China
stockpiles is improbable to support the resurrecting of mothballed vanadium-magnetite-
ore fed steel operations which dominate global vanadium production. Unlike the 2005
surge, no new vanadium production from steel mills is expected under stringent
environmental restriction. While a number of primary output is under advanced
development, future global production will be constrained by the geological scarcity of
deposits with the requisite scale and grade to be economically viable.
Vanadium price volatility vs. base and precious metal complex, % Energy storage system application vs technology type
In the near-term, market tightness is expected to remain, with prices forecast to average
US$50/kg over 2018 and US$35/kg long-term prices. However, distinctly elevated
volatility of the two primary vanadium products, recording 60% for FeV and 72% for V 2O5
highlights potential downside risk to prices.
Demand
Summary
The Asian market continues to dominate vanadium consumption with at least 49%
aggregate global usage in 2016, split across China (43%) and Japan (6%), consequent of the
significant output in worldwide steel manufacture. Ex-Asia demand trends are the same as
global steel consumption, with European demand topping NAFTA with 18% and 13%
respectively.
Source: Vanitec
Following its peak in 2014, vanadium demand contracted 16.8% from c97Kt annual usage
in the following two years, a trend which traces a lulling high-strength steel market during
the same two-year period. Global vanadium consumption shows strong resurgence from
2016 low of c82kt on improving steel fundamentals and revised Chinese vanadium
standards incorporated within broad high-strength construction steel production. The
cumulative impact of rising steel rebar vanadium intensities and emerging energy storage
demand encouraged global consumption 7.2% higher to an estimated annual level of 89Kt
in 2017.
Global 12m moving average vanadium consumption vs. steel production (1998- Global steel demand, Mt
2016) (2016-2018e)
The vanadium end-use market is dictated by movements in steel manufacturing, with the
industry accounting for 91% aggregate demand. The transition metal provides broad
industrial applications as an alloying agent in a range of different steels. Vanadium steel
enhances durability while considerably reducing weight and increasing tensile strength. The
addition of 1kg vanadium to a single tonne of steel has the effect of doubling the strength
of the alloy. Typically containing less than 0.2% of vanadium, the alloy can be utilized in “as-
forged” condition, removing the necessity for additional heat treating or alloy additives. The
steel creates good castings, retains a cutting edge, and exhibits very little wear even at high-
temperature. Often desirable for its light weight, vanadium steel is also desired for its
resistance to erosion by salt water, hydrochloric and sulphuric acids.
The predominant alloy production outputs high-strength, low-alloy (HSLA) steel, making up
48% total vanadium applications in steel. HSLA steel contains ≤8% alloying elements
including Cr, Ni, Mo, Co, Nb, Ti, N and Zr, to create superior mechanical properties against
conventional carbon steels.
Henry Ford utilised vanadium metal in the production of chassis for the famous Ford Model
T back in 1908. Modern end-use application focuses on construction reinforcing bars for
buildings, bridges, automotive manufacture, oil pipelines, railway lines and heavy
machinery tools.
In a steadily diminishing sector, vanadium steel is valued within the oil and gas industry for
its high tensile strength to endure high pressures, thereby significantly reducing
transportation costs. The low temperature resilience of the alloy also provided resistance
to brittle fracture in cold climates of Alaska, Russia and Alberta. Fast weldability of the alloy
also allowed minimal susceptibility to hydrogen cracking.
Source: Statistics
While world crude steel output has advanced 5.3% in 2017 to the equivalent of 1,691.2mt,
according to Worldsteel data, the intensity of vanadium usage within specialist alloys has
increased at an average 8% CAGR. Though steel production is expected to have a modest
CAGR through 2020, approx. 1.2%, increasing rebar standards and consequently vanadium
intensity coupled with specific end-use growth drivers will allow vanadium demand growth
to continue to expand beyond steel growth.
More stringent Corporate Average Fuel Economy (CAFE) standards are driving automotive
manufacturers to enhance consumption of high-strength, low-weight steels, expected to
grow at 6.8% CAGR through 2025.
There is a global discrepancy in vanadium intensities within steel alloy manufacture, with
emerging markets setting significantly lower standards for output. North America heads
apparent vanadium consumption with an average 0.093% intensity, followed by Europe
with average 0.073%. Chinese steel standards fell almost half, averaging 0.037%, before
authorities revised steel product standards in an effort to combat recurring risk from
structural damage caused by a series of earthquakes in 2008.
Rising vanadium prices typically drive some steel mills to favour vanadium nitrate or ferro-
niobium, a cheaper and less effective substitutions in HSLA steel manufacture, drawing cost
savings to 30-40%. In order the meet growing standards, consumption of FeNb in high-
tensile strength steels are higher than vanadium; ~110g/t in North America, ~80g/t in
Europe and Japan, while the Chinese market falls ~25g/t. However, introduction of the
revised rebar standard gives steel mills’ precise regulations and the risk of substitution is
expected to decline.
Source: IRENA
Due to its low energy density (up to 5x less than lithium-ion examples), VRFBs are not
suitable for mobile applications, but are useful in load levelling at power stations, peak
shaving for industrial users and storage for renewable sources of energy. Consequently,
battery-grade vanadium demand may be considered a market function of global energy
storage capacity.
2017 announced, contracted, and under construction storage capacity by technology type
Electricity systems already require a range of ancillary services to ensure smooth and
reliable operation, requiring a degree of flexibility services, which allow grid operators to
react to unexpected changes in demand or losses in supply. Electricity storage will be
fundamental to the energy transition, with services directly supporting the integration of
variable renewable electricity.
Commercial operations for flow batteries could capture 5% global storage capacity,
according to the Global Energy Storage Database, with vanadium flow batteries
representing 25,250kW capacity (2.1%) of the total 1.2GW.
By contrast Lithium-ion, with its first mover advantage, has already captured 27%
worldwide capacity. Lithium batteries have relatively short life and are more prone to
degradation and failure.
The global power sector is at the forefront of an energy transition as declining technology
costs buoy electrification. Strong electrified growth is expected to boost power demand
almost four times as fast as other fuels. While most project capacity focuses on an additional
20-40GWh of storage deployed by 2025, by 2030 forecast capacity targets a supplementary
125GW/305GWh for the energy storage market (Bloomberg). Citigroup present a more
bullish case, forecasting VFRB capturing up to 400GW by 2030.
The expansive trajectory indicates the global energy storage market will double more than
six times between 2016 and 2030, while deployed capacity will be focused across eight
countries; with 70% capacity split across the US, China, Japan, India, Germany, UK, Australia
and South Korea.
Generation capacity, GW Global cumulative storage deployment, GWh
(2015-2050e) (2016-2030e)
Forecasts from Navigant and Boston Consulting Group expect VRFBs to capture 15-25% of
the market, although superior cost reduction potential of the technology is expected to
drive the market share significantly higher. Lazard’s analysis already concludes that VRFBs
already demonstrate the lowest levelized costs across the sector in 2017. Mass adoption of
commercial systems such as those developed by RedT, UniEnergy Technologies and
Bushveld Minerals should assist with the penetration of VRFBs into the fledgling market.
Results from Greentech Media’s 2017 Energy Storage Summit polling 500 professionals also
revealed 46% sentiment toward VRFBs dominating utility-scale advanced storage
technology.
2017 levelized cost comparison Lithium-ion vs. VRFB, US$/kWh Greentech Media’s 2017 Energy Storage Summit sentiment poll
Energy installation costs in 2016 for flow batteries ranges USD315-1,680/kWh, which are
expected to diminish by approximately two-thirds to range USD108-576kWh. According to
the International Renewable Energy Agency data, the VRFB technology is not forecast to
exceed $360/kWh, with a central estimate of approx. $120/kWh. Although cost reduction
estimates require coordinated adoption within uncertain markets, most reductions would
derive from items affected by a competitive environment, with the benefits of a larger-scale
market being very important. The figure below indicates the cost reductions associated with
flow batteries to dominate various battery technologies, thereby promoting the mass
adoption of the system as installed capacity gains traction.
Battery electricity storage system installed energy cost reduction potential
(2016-2030e)
Source: IRENA
The vanadium redox flow battery storage mechanism involves redox reactions in the cell
that are fed by active ionic vanadium materials from electrolyte tanks, resulting in electron
transference. The circuit relies on four oxidation states with V2+/ V3+ and V5+/ V4+ couples in
a mild sulphuric acid solution. The simple circuit relies on an ion-selective membrane within
the cell to separate the electrolytes on each side of the cell to prevent ion cross-
contamination. Consequently, the single active vanadium dominates almost 30% of the cost
breakdown of the battery, with the mammoth 800MWh VRFB storage facility requiring
c4,400t of vanadium (EPRI). Therefore, each additional utility-scale operation may consume
5.7% 2016 global production. The cost of production for the vanadium electrolyte will be
fundamental in the successful cost reduction of the systems, therefore securing cheap, long-
term high-quality vanadium feedstock material is crucial.
VRFB cost breakdown, % Potential pathway to reach cost-effective VRFB storage, US$/kWh
Source: EPRI – Vanadium Redox Flow Batteries, Bushveld analysis, International Renewable Energy Agency, based on Darling et al., 2014
Energy storage technologies are underpinned by different intrinsic properties which
determine their technical suitability for applications and services to electricity systems.
Technological traits of each system favour specific application, with flow batteries spanning
a broad power rating from 10kW-100MW. Within the power range for flow batteries there
is strong competition from diverse energy storage technologies, demanding future capacity
and therefore represent a risk to future vanadium demand and market capture.
China is leading the charge into the disruptive energy storage solution, with the National
Development and Reform Commission recently releasing a policy document that called for
the launch of pilot projects which ramp up utilisation of VRFBs for its electric grid by the end
of 2020.
VRFBs offer a solution to the nations limited distribution networks which makes
intermittent renewable energy sources a more desirable electricity option. In order to
further develop its installed capacity of over 160GW, China plans to expand its redox storage
in parallel with its wind and solar initiatives (IEA).
Early adoption by the Chinese government forms a strong strategic push for energy storage
to yield large flow battery projects, while hosting the largest VRFBs installation is expected
to “be the cornerstone of a new smart energy grid”. A project demonstrating the integration
of energy storage onto grid networks in Hubei, China, will see the first phase of a
10MW/40MWh operation constructed by Pu Neng, a major vanadium flow battery
manufacturer. While the first stage of the Hubei Zaoyang Storage Integration
Demonstration Project looks to assist the integration of power from large-scale
photovoltaics locally, the scale is already dwarfed by a mammoth 200MW/800MWh energy
system. Manufactured by Rongke Power and UniEnergy Technology, the battery will
provide power during peak hours of demand, enhance grid stability and deliver energy
during black-start conditions in case of emergency. The station will help balance supply and
demand on the Liaoning province power grid, which serves around 40 million people.
The world’s largest electric power VRB storage system (200MW, 800MWh) installed by Rongke Power. The system utilized abundant wind and photovoltaic
energy generation and expected to support 8% of Dalian’s, China, city load needs.
The above installation represents a surging interest toward vanadium redox flow batteries.
According to the US Department of Energy’s global energy storage database, since 2014
there are more than 30 cumulative projects spanning 11 countries which are under
construction or in deployment. These project range in power from a few tens of kilowatts
up to the major Dalian facility.
The current flow battery market is expected to swell from $230 million in 2018 to $946
million by 2023, at a CAGR of 33% (energy and capital).
The widespread adoption of VRFB’s as an effective energy storage solution could emerge as
a disruptive trend in the vanadium market, driving a structural change in a market
dominated by steel manufacture. If realised, projected growth in the energy storage sector
could see the shares of vanadium consumption rise from 2-3% of current demand to up to
20% by 2030, according to Bushveld Minerals.
Vanadium chemical application across energy storage systems (ESS) is a rapidly developing
global market which is set to expand significantly with demand for large, reliable and
efficient batteries with swift response properties. Target markets for vanadium redox flow
batteries (VRFBs) include off-grid power supply, grid connected power stabilization systems
and revenue, and energy storage for intermittent renewable energy generation units.
Modern iterations rely on technology originally conceived by NASA during the energy crisis
of the 1970’s, with the first demonstration VRFB carried out in Australia in 1980 undergoing
patenting by Professor M. Skyllas-Kazacos at the University of New South Wales in 1986.
Vanadium oxidation states may be distinguished by multiple colors. Each color
Redox reaction inside a VRFB relates to a separate vanadium ion contained within the sulfuric acid in a VRFB
Redox batteries operate by converting chemical into electrical energy during discharging
mode and back in the charging process using the vanadium ability to exist in 4 different
oxidation states. Each oxidation state relates to a different charge of the vanadium ion (V2+,
V3+, V4+ and V5+) with 4 of those participating in the reduction/oxidation “redox” process.
During the discharge, two reactions run simultaneously in two half-cells: oxidation in the
anode (conversion of V2+ to V3+ by the release of electrons which by travelling through a
conductor create an electric current) and reduction in the cathode (conversion of V5+ to
V4+ by accepting additional electron). Effectively, vanadium is used on both the cathode
and the anode, eliminating any risks due to contamination and crossover of elements in the
battery. The process is continuous with electrolytes allowing the reaction to occur being
pumped through the battery from external tanks until the reservoir of charged electrolyte
runs down. The reaction is reversed once the battery is being charged.
VRFBs possess a number of advantages when compared to other types of batteries (see
table below) including lithium and lead acid based systems including a longer life cycle, short
recharging time, low self-discharge and ability to expand power and energy capacity in a
modular approach (the size of reservoirs storing electrolyte defines the energetic capacity
(kWh) while the number of cells (2 electrodes, 2 reservoirs and a conductor) dictate the
power (kW) if the system).
Comparison of VRB and Li-ion systems Vanadium Redox Batteries Li-ion
Relative advantages:
Low self-discharge + -
Relative drawbacks:
As the reaction in the VRFB occurs between two electrolytes rather than between
electrodes and electrolyte there is no wear of electroactive parts as the battery
continuously charge/discharge. Further, the single element electrolyte overcomes cross-
contamination degradation, allowing battery cycles to extend >10,000 cycles, compared to
3,500 for Li-ion (~70% end-of-life usable capacity) and 1,500 for Lead Acid (~50% end-of-life
usable capacity). Maintenance costs are principally limited to the replacement of the
polymer membrane, while the vanadium electrolyte offers recyclable potential following
the 25-year machine life.
Power element:
Battery stacks
Energy element:
Source: Gildemeister
Producers and developers have been heavily involved in VRFBs research looking at ways to
improve operational characteristics of the battery and reduce capital costs. Research out of
the Pacific Northwest National Laboratory developed mixed sulphate (SO 42-) and chloride
(Cl-) electrolyte solution which increases the energy storage capacity of the battery by some
70%, which in turn reduces the $/kWh VRFB cost. The use of Cl- also increases the operating
temperature window by 83% to -5-50°C, with other properties such as electrochemical
reversibility, conductivity, and viscosity also showing improvement.
- combined with solar or wind generation for remote communities (Remote Area Power Systems – RAPS)
Source: UNSW
Supply
Global vanadium supply is expected to have climbed c3.9% throughout 2017 to 79,000 tonnes
in response to advancing vanadium consumption within high-tensile strength steel rebar and
budding chemical vanadium redox-flow battery output. Production is dominated by three
majors; China accounting for 57% (2016 output), Russia 11% and South Africa 10%.
Source: Vanitec
Global production is estimated to rebound through 2017 after contracting from highs of
c90,000 tonnes in 2014 to 2016 lows. The two-year fall represented approximately 18.4%
equivalent to 14,000 tonnes vanadium, which matches a comparable downward trend in
Chinese steel production and demand covering the same period. A significant decline in co-
produced vanadium from Chinese processing of magnetite iron ore resulting from financially
constrained production led to a material decline in global vanadium supply.
South Africa has also historically been the largest supplier of primary vanadium, and
supplemented with significant quantities of co-product sourced material. Output has drifted
with the closure of EVRAZ Highveld Steel and Vanadium’s operations during 2016, leaving
Vametco and Glencore’s Rhovan operation as the only active vanadium producers.
Source: Steelhome
In a unique market fundamental to vanadium the principal consumer, steelmakers, also
indirectly represent the most significant global source; with 73% generated through the
processing of magnetite iron ore as co-product slag (containing up to 20% vanadium).
Consequently, the outlook for the iron-ore and steel industry can provide insight into the
vanadium industry.
Growing Chinese environmental legislations are also applying significant pressure on more-
polluting magnetite operations, with the Ministry of Environmental Protection targeting
emissions standards through 2020. The Asian nation plans to cut emissions of sulphur dioxide
and nitrogen oxide, major sources of hazardous airborne PM2.5 particles, via continued
reduction of steel capacity according to reporting by the National Development and Reform
Commission (NDRC).
Cutting 30 million tonnes of steel capacity in 2018 will draw the total across the last three
years to 145 million tonnes. The initial target aimed for 150 million tonnes by 2020, with
further capacity restrictions indicating the dedication to improving air quality across
China.
The air quality department at the Ministry of Environmental Protection urges responsible
regional industrial output, with officials in key steel hubs such as Tangshan City proposing
an extension of the winter production curbs enforced during November through March,
equivalent to 10-15% output.
Consequently, there is a broad industrial preference for higher-quality, more efficient
haematite ore; evident in the enlarging price disparity in benchmark quality ores and rising
low-grade iron ore stockpiles across Chinese ports, which have surged to record breaking
levels of 159.13 million tonnes (February 2018).
The cumulative impact of China’s war on smog and promotion of environmentalism is driving
iron ore blends to lower vanadium content raw material, and therefore reducing global
production via co-production. More stringent air quality targets set to cover the 2018-2020
period will only exacerbate the focus on high-grade and limit the principal source of global
vanadium.
The downside pressure from environmental restrictions could significantly hamper global
output, with only eight operating vanadium steel mills across China (MSA Group) producing
over 50% feedstock. Environmental or economic issues restricting a single operation could
therefore reduce global vanadium production by up to 10%.
Primary mining and processing operations account for 17%, despite world resources
exceeding 63 million tonnes (USGS). China dominates global reserves with 47% equivalent to
9 million tonnes, followed by Russia with 5 million tonnes and South African reserves totaling
3.5 million tonnes.
The most significant source of vanadium, accounting for around 85% of world production is
titaniferous magnetite. Major vanadium-bearing titaniferous magnetite deposits are found in
Bushveld complex in South Africa, the Kachkanar Massif of the Ural Mountains of Russia, and
the Sichuan province in China. Subject to deposit characteristics, titaniferous magnetite ores
present a global source of vanadium, iron ore and ilmenite.
Additional global uraniferous sandstone and siltstone containing 0.1-2% vanadium represents
the primary US source of the metal, co-produced as vanadium silicates and oxide-vanadates
in association with uranium from the Colorado Plateau operation. Kazakhstan, Uzbekistan,
Gabon and South Africa also have large uraniferous sandstone deposits.
Phosphate rock also hosts vanadium, however typically produced as a fertilizer by-product,
the rock is not a major source of commercial vanadium.
Significant quantities are also recovered from bauxite and carboniferous materials, such as
coal, crude oil, oil shale, and tar sands. Typical vanadium recovery occurs as a by-product or
co-product, therefore demonstrate world resources are not fully indicative of available
supplies.
Pangang Group Vanadium & Titanium Resources Co. is the largest vanadium producer in
China with operations located in Pazhihua, known as the ‘Vanadium City’, generating
vanadium slag alongside iron ore and ilmenite concentrates. The company has the
capacity of approx. 10mt steel and 24,000 tonnes vanadium co-product.
EVRAZ, a vertically integrated steel producing and mining group, comprising the most
significant ferrovanadium operation outside of China, providing 23% global supply in
2016. EVRAZ Vanady Tula is the largest Russian producer of ferrovanadium, with capacity
to produce 5,000 tonnes ferrovanadium and 7,500 tonnes vanadium pentoxide. EVRAZ
Nikom in Czech Republic reprocesses vanadium pentoxide received from EVRAZ Vanady
Tula and China to 4,940 tonnes ferrovanadium. The US and South African Stratcor
operation is a producer of the highest-purity vanadium oxide with annual capacity of
2,750 tonnes.
The Rhovan primary vanadium mine owned and operated by Glencore in the Bushveld
Complex in South Africa generated 9,480 tonnes vanadium during 2017.
Largo Resources operates its flagship Maracás Menchen mine in Brazil, boasting the
highest-grade vanadium resource in the world at 1.17% (P&P). Production commenced in
August 2014, with annual output averaging 9,600 tonnes V 2O5, although there remains
tremendous upside potential for expansion of the 18.4 million tonne resource base and
production rates.
Contained V2O5
Company Project V2O5, kt grade
Brits <2.6%
The major Bushveld Minerals vanadium project located in South Africa contains
approximately 20 billion tonnes of vanadium as well as titanium, representing 26% of the
world’s vanadium reserves. The company aims to be the most vertically integrated
primary vanadium platform, developing downstream operations extending to the
manufacture of vanadium electrolyte and large-scale VRFB assembly. Exploration targets
mineralisation in the Main Magnetite Layer and comprises three key assets;
Mokopane Vanadium Project – 298Mt JORC with average in-magnetite grade of 1.75%
V2O5
Brits Vanadium Project – Outcropping, strike extension of Vametco mine with historic
drilling with indicative 2.6% V2O5 max grades
Syrah Resources is developing the Balama Project, the world’s largest graphite deposit
with vanadium as a by-product, in Mozambique. The resource is estimated to host 1.19Bt
at 11% TGC and 0.45% V2O5 (Mephiche Zone resource statement), for 128.5Mt contained
graphite. This compares to total global reserves of 253Mt, according to the latest USGS
report. Metallurgical testwork on the vanadium stream highlights potential for a two-step
development program focusing on the production of 99.9% V 2O5 chemical powder and
98.5% V2O5 flake. While the project initially focuses on developing the graphite reserves,
high purity vanadium samples produced from Balama pilot plant have been sent to a
number of major vanadium redox flow battery producers.
Uranium miner Energy Fuels overturned federal Bureau of Land Management and US
Forest Service approvals in February 2018 to expand operations at two mines in southeast
Utah, following years of challenges from conservation groups concerned with radon gas
emissions. Current mines are not operational due to sustained low uranium prices,
however the company is evaluating the La Sal complex as a vanadium resource. The La Sal
complex hosts 1327Kt ore with an average 0.88% grade, thereby hosting 11.7Kt V 2O5.
Source: VanadiumCorp
VanadiumCorp’s integrated operation targets vanadium ore across Quebec, Canada, for
direct recovery into flow battery electrolyte. The company’s flagship Lac Doré project
resource measures 282Kt V2O5 from VTM (vanadiferous titanomagnetite) concentrate
grading 1.08% V2O5. VanadiumCorp partnered with Electrochem Technologies & Materials
Inc. to develop a new electrochemical patent-pending process ‘VanadiumCorp-
Electrochem Process Technology’ to extract vanadium without slagging, smelting or
roasting. The vanadium bearing feedstock promises 95% recoveries of VTM compared to
average 0.5-1% for conventional salt roasting primary production methods. While bench-
level testwork reveals positive processing, it remains to be proven the success of
commercial-scale production of vanadium electrolyte.
TNG Ltd advance the Mount Peak deposit in Australia after executing a series of life-of-
mine binding off-take agreements for its titanium oxide, pig iron and vanadium products;
WOOJIN metals (leading supplier of FeV) secured a minimum 60% of vanadium output,
with Guvnor targeting iron products. The company will implement its patented TIVAN
hydrometallurgical process for treating vanadiferous ores via acid leaching and solvent
extraction of vanadium, titanium and iron from the magnetite concentrate. The 160Mt
resources grades at 0.28% vanadium, 5.3% titanium and 23% iron, equating to 243Kt V 2O5.
Secondary sources of vanadium represent the most marginal operations, relying on elevated
vanadium prices to sustain production. 10% of aggregate supply is derived from oil residues,
spent catalysts and power station fly ash, which exposes operations to fluctuating market
pricing and availability of raw materials. Crude oil in the Caribbean basin, parts of the Middle
East and Russia, tar sand in western Canada and coal in parts of China and the US contain
vanadium, which is recovered as part of the refining and burning of fuel sources.
Source: TPP Squared Inc. (Note – axis values may not be representative)
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