Vanadium is a grey transition metal that is currently used as a strengthener in steel alloys. Surging growth in the global steel industries will keep conventional demand for vanadium strong, but new upcoming applications for the metal, such as vanadium-redux batteries and lithium-ion batteries, is where the real potential for growth lies. Demand for vanadium is expected to more than double from current levels by the year 2025, according to TTP Squared Inc. Dive into the infographic below for the full story!
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We try to cover the context of a commodity, in this case vanadium, and we encourage investors to do their own due diligence on companies in this space. That said, we do have some recommendations on where to start your research.
If you are looking for safe play, Largo Resources (OTCPK:LGORF) is where you should begin looking. With a $118.5 million dollar market cap, Largo is one of the bigger companies exploring this commodity. Largo will begin production at world class vanadium projects and world class tungsten projects in the next five years, and expects to increase annual cash flow 35 times to $280 million CDN in the same time frame.
American Vanadium (OTC:RMRCF) is another company to watch as well, as it is poised to become not only a large vanadium producer (with the potential ability to supply 5% of current global demand) but also the only vanadium producer in North America and the lowest-cost producer in the world.
Energizer Resources (OTCQX:ENZR) is also worth researching. It is currently developing their Green Giant Vanadium project in Madagascar. Unlike any other known deposit, the vanadium is hosted in sediment, not magnetite. This means battery grade vanadium can be produced with less processing. On top of that, large flake graphite was recently discovered on the same property. View our recent article (Graphite: The Driving Force Behind Green Technology) to learn more about the opportunities surrounding this important mineral.
Other companies that we recommend looking into are Apella Resources (OTCPK:APAFF) and Atlantic Ltd (NYSE:ATI). Apella currently owns the second-largest vanadium deposit in the world, but with a market cap of only $11 million, it could prove to be greatly undervalued. Atlantic recently began production in its Windimurra property in Western Australia. At the current production rate, Atlantic will supply 10% of the world's vanadium demand this year, while being strategically located to serve Asian markets.
We hope you enjoyed our infographic and learned much about vanadium. Good luck with your research!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: Visual Capitalist content is researched independently with the goal of educating investors on resource investing and management. Visual Capitalist does not receive direct compensation to produce this content, though it does provide other services and sponsorship opportunities from time-to-time to help cover costs.