Largo Vanadium Pentoxide Output Doubles as Brazil Ore Grades Improve

Largo

Largo vanadium pentoxide output more than doubled in the first quarter as higher-grade ore and steadier processing lifted production at the Maracás Menchen Mine in Brazil. The Canadian metals producer produced 2,616t of V2O5 during the quarter, up 101.7% from a year earlier.

The result placed Largo vanadium pentoxide output at the upper end of the company’s first-quarter expectations. It also showed a clear operational recovery from stronger ore availability and more consistent processing performance.

Largo vanadium pentoxide output is important because vanadium demand is gaining support from steelmaking, aerospace alloys, chemical catalysts and vanadium redox flow batteries. Higher Brazilian production adds supply at a time when energy storage demand is becoming a larger part of the vanadium market.

Higher Ore Volumes and Grades Lift Vanadium Production

Largo mined 852,046t of ore in the first quarter, up 90.8% from a year earlier. The effective ore grade rose to 0.48% V2O5 from 0.41% in 2025.

The higher ore grade improved plant feed quality and supported stronger recovery through the processing circuit. More consistent ore processing also helped the company convert higher mined volumes into finished vanadium pentoxide.

Sales volumes rose by nearly 4% on the year to 2,141t. Largo cited stronger vanadium demand and reduced US tariffs on Brazilian exports as key drivers behind the increase.

The company expects stronger sales in the second quarter. This reflects a lag in sales realisation and higher pricing achieved in the second half of the first quarter after the US tariff reduction.

For the vanadium market, the result points to improving supply from one of the main non-Chinese producers. That matters as buyers look for diversified sources of vanadium outside China’s large steel-linked production base.

Ilmenite and By-Products Add Resource Optionality

Largo also increased ilmenite production from January to April. Output reached about 11,500t, up 32.7% from a year earlier, while sales volumes were close to the same level.

Ilmenite provides Largo with another revenue stream linked to titanium feedstock markets. Titanium dioxide, welding consumables and titanium metal supply chains all depend on stable mineral feedstock availability.

The company also filed a request on 10 April to authorise production and sales of copper, platinum group metals, nickel and cobalt as by-products of its vanadium operations.

This step could improve resource recovery and strengthen project economics if the by-products can be recovered commercially. It would also align Largo with a wider industry trend toward extracting more value from complex ore bodies.

By-product recovery is increasingly important in critical minerals supply chains. Producers are looking to capture cobalt, nickel, PGMs and other metals where they already exist in operating systems, reducing waste and improving supply efficiency.

The Metalnomist Commentary

Largo’s first-quarter performance shows how quickly vanadium supply can improve when ore grade and plant consistency recover together. The by-product strategy could become equally important if it turns Maracás Menchen into a broader critical minerals platform.

Largo Increases V2O5 Production Outlook for 2025 Despite Early Challenges

Largo

Vanadium producer anticipates higher production in 2025 but warns of early-year disruptions.

Largo, a leading vanadium producer, has raised its production outlook for vanadium pentoxide (V2O5) in 2025. The company forecasts producing between 9,500 and 11,500 metric tonnes (t) of V2O5, with production heavily weighted toward the second half of the year. However, Largo has warned that its early-year output will face disruptions due to heavy rainfall and a delayed ramp-up after scheduled maintenance during the latest quarter.

Challenges in Early 2025 Production

Largo’s production plans for the first half of 2025 are expected to face several challenges. The company has highlighted that lower ore grades and mine sequencing adjustments will place additional pressure on production. As a result, early-year output may fall below expectations. Despite these short-term setbacks, the company remains confident in achieving a higher overall output for the year.

2024 Performance and 2025 Sales Forecast

In 2024, Largo produced 9,264t of V2O5 at its Maracás Menchen mine in Brazil, slightly under its annual guidance and down 4.3% from 2023 levels. Despite the production dip, full-year sales volumes of 9,600t were within expectations, although they fell by 7.7% compared to the previous year. For 2025, the company projects that sales will fall within the range of 7,500-9,500t, largely due to the early disruptions.

Fourth-Quarter Performance and Ilmenite Production

The fourth quarter of 2024 saw a 36% drop in vanadium pentoxide output, falling to 1,775t due to planned maintenance work, including kiln and refractory maintenance. However, sales in the same period saw a 16% increase, reaching 3,033t, with a portion of these sales coming from purchased units and material acquired through an inventory supply agreement.

Ore grades also dropped in the fourth quarter, from 0.82% in the prior year to 0.49%. Recovery rates also saw a decline, falling from 79.4% to 77.9%. Alongside its V2O5 operations, Largo has adjusted its ilmenite production forecast for 2025, targeting between 25,000 and 35,000t, down from 44,863t in 2024. The company expects to sell between 20,000 and 30,000t of ilmenite, compared to 42,916t sold last year.

Conclusion

Despite a challenging start to 2025, Largo remains optimistic about its long-term production targets. The company is positioning itself to ramp up production in the second half of the year, aiming for a stronger finish. With vanadium ore grades and recovery rates under pressure, Largo will need to address early setbacks to meet its 2025 sales and production goals.

Largo V2O5 Production Outlook Cut as Brazil Ore Grades Weaken

Largo

Largo has revised its V2O5 production outlook for 2025, citing lower ore grades and equipment issues at its Maracás Menchen mine. The Largo V2O5 production outlook now ranges between 8,500–10,500 tonnes, down from the previous forecast of 9,500–11,500 tonnes issued in February.

Lower Grades and Mining Constraints Impact Q1 Output

Largo’s first-quarter vanadium pentoxide (V2O5) production dropped by 25% year-on-year to 1,297 tonnes. The sharp decline stems from a 12-percentage point fall in ore grade to 41%, alongside reduced equipment availability. Total ore mined fell by 26% to 446,614 tonnes, while vanadium concentrate output slid by 29% to 53,245 tonnes.

Despite these setbacks, recovery rates improved to 77.8% from 70.5%, suggesting operational efficiency gains within the plant. However, the company also adjusted its sales volume guidance for 2025 to 6,500–8,500 tonnes, down from the earlier 7,500–9,500 tonnes.

Ilmenite Segment Shows Mixed Signals

Largo maintained its ilmenite production guidance at 25,000–35,000 tonnes, with sales volume expectations of 20,000–30,000 tonnes for the year. However, first-quarter ilmenite production dropped 36% to 6,162 tonnes. In contrast, unit sales surged to 8,647 tonnes—an impressive jump from just 513 tonnes in the same period last year, indicating a backlog clearance or improved market demand.

The company remains focused on accessing higher-grade vanadium ore later this year, which may support a recovery in production levels in the second half of 2025.

The Metalnomist Commentary

Largo’s reduced V2O5 production outlook reflects the ongoing operational volatility in specialty metals mining. While short-term constraints weigh on vanadium output, improved recovery and ilmenite sales offer some upside. Investors will closely watch Largo’s second-half mining performance in Brazil.

Largo’s Vanadium Pentoxide Output Hits Two-Year High Despite Slower Sales

Largo Inc

Largo Inc. posted a strong 42% increase in vanadium pentoxide (V2O5) production in Q3 2024, driven by operational improvements at its Maracás Menchen mine in Brazil. However, sales volumes slipped by 18% amid weak demand from key steel markets in China and Europe.

Vanadium Pentoxide Production and Operational Gains

In Q3 2024, Largo produced 3,072 metric tonnes (t) of V2O5, its highest quarterly output in nearly two years, up from 2,163t during the same period in 2023. The growth was attributed to:

• Enhanced operational efficiencies.
• Higher vanadium recovery rates from processed ore.
• Completion of kiln refractory replacement and new equipment installations earlier this year.

Quarterly concentrate production also surged by 42%, reaching 124,408t.

Lagging Sales and Spot Market Challenges

Despite the production gains, Largo's V2O5 sales volumes fell to 1,961t in Q3, down from 2,385t in the prior-year quarter. The decline stemmed from lower spot market demand, which the company linked to adverse conditions in the Chinese and European steel industries.

Liquidity Boost Through Asset Manager Deal

To enhance capital liquidity and reduce inventories, Largo signed a deal to supply 2,100t of standard-grade V2O5 to an unnamed New York-based asset manager for $23.5 million. Key terms include:

• Staggered shipments between 17 October 2024 and 31 March 2025.
• Payment upon delivery.
• A repurchase option allowing Largo to buy back up to 2,100t at a fixed price (≤ $7/lb), with the final volume determined by September 2027.

By-Product Growth: Ilmenite

Largo also reported strong growth in ilmenite production, a by-product of its vanadium operations. Key figures include:

• A 90% sequential increase in production to 16,383t.
• A 60% rise in sales volumes to 19,572t.

Ilmenite figures were first reported in Q4 2023, making year-over-year comparisons unavailable.

Largo and Stryten Launch Storion Energy to Boost U.S. Vanadium Redox Flow Battery Market

Largo

Largo and Stryten Energy have officially formed Storion Energy, a joint venture designed to produce vanadium electrolyte for vanadium redox flow batteries (VRFBs). The collaboration aims to strengthen the U.S. long-duration energy storage (LDES) sector by reducing reliance on imported vanadium-based energy solutions.

Storion will combine Stryten’s proprietary VRFB technology with vanadium pentoxide (V₂O₅) from Largo’s Maracás Menchen Mine in Brazil, providing a reliable domestic supply of vanadium electrolyte for U.S. battery manufacturers. The venture seeks to expand VRFB adoption as an alternative to lithium-ion batteries, particularly in applications requiring extended-duration energy storage.

Reducing Costs to Compete with Lithium-Ion Batteries

One of the major challenges for VRFB deployment in Western markets is the high cost of vanadium electrolyte, which accounts for 40-50% of a VRFB system’s total cost, depending on market vanadium prices.

Storion plans to supply vanadium electrolyte at just $0.02/kWh, well below the U.S. Department of Energy’s (DOE) target of $0.05/kWh for flow batteries that provide at least 10 hours of energy storage. This cost reduction is made possible by:

• Stryten’s advanced technology for efficient electrolyte production.

• Largo’s vanadium leasing model through Largo Physical Vanadium, which helps mitigate upfront material costs.

Strategic U.S. Manufacturing Presence

Storion Energy will operate out of Alpharetta, Georgia—where Stryten’s headquarters is located—and Wilmington, Massachusetts, home to Largo Clean Energy. This dual-location setup will enable efficient production and distribution of vanadium electrolytes, enhancing domestic energy security and accelerating VRFB commercialization.

US Vanadium Pentoxide Purchase Signals Stronger Defense Support for Aerospace Supply

US Vanadium

The US vanadium pentoxide purchase marks a strategic move to strengthen aerospace materials security. The Defense Logistics Agency plans to buy high-purity V2O5 from US Vanadium and Largo through five-year fixed-price contracts. These materials are intended for aerospace applications. As a result, the US vanadium pentoxide purchase supports both defense readiness and supply chain stability.

This decision matters because vanadium processing capacity remains limited in the United States. US Vanadium is the only at-scale domestic producer of aerospace-qualified V2O5. Largo also plays a major role as a leading supplier of aerospace-grade material to the US market. Therefore, the US vanadium pentoxide purchase reflects a targeted effort to secure trusted suppliers.

The scale of the tender also shows seriousness of intent. The DLA initially sought up to 2,876 metric tonnes of V2O5. That is not a symbolic procurement action. Consequently, the contract structure suggests the government wants predictable supply rather than spot-market exposure.

Aerospace Grade V2O5 Is Becoming a Strategic Material

Aerospace grade V2O5 is now being treated more clearly as a strategic material. High-purity vanadium pentoxide supports aerospace applications that require strict quality standards and reliable sourcing. That makes supplier qualification just as important as simple volume availability. As a result, the government is focusing on producers that already meet aerospace-grade requirements.

The supplier mix also highlights how narrow this market remains. US Vanadium provides domestic refining strength through its Arkansas flaking plant. Largo adds supply from its Maracás Menchen operation in Brazil. Therefore, the US vanadium supply chain still depends on a combination of local processing and allied foreign production.

That dependence helps explain the fixed-price structure. Long-term contracts can reduce uncertainty for both buyers and producers. They can also help keep strategic capacity alive in markets where pricing volatility and trade disruption create operating stress. Consequently, the DLA appears to be using procurement as an industrial policy tool.

US Vanadium Supply Chain Still Faces Fragility

The US vanadium supply chain remains fragile despite this support. The DLA noted that Largo faces financial pressure and could be at risk of failure for reasons beyond its control. That warning is important because it shows supply security cannot be assumed even when qualified producers exist. Therefore, the procurement effort is also a stabilization measure.

Trade policy has already added pressure to the market. Largo previously delayed and defaulted on some vanadium shipments to US customers because of tariffs on Brazilian imports and liquidity challenges. That combination of trade friction and financial strain shows how quickly critical mineral supply can weaken. As a result, the US vanadium pentoxide purchase may help prevent a deeper break in supply continuity.

The broader lesson is clear. Defense supply chains need more than access to raw materials. They need qualified processing, financially viable producers, and predictable contract support. Consequently, this V2O5 procurement may become a model for how the US handles other specialty minerals with narrow supplier bases.

The Metalnomist Commentary

This is more than a routine procurement contract. It is a reminder that critical minerals security often depends on keeping a very small number of qualified producers alive. In vanadium, the challenge is not just finding material. It is preserving the industrial capability to deliver aerospace-grade material consistently.

Largo Lowers Ilmenite Production Forecast Due to Rescheduled Maintenance

Largo, a leading vanadium producer, has revised its ilmenite production and sales forecasts downward for the remainder of the year, following a decision to advance its annual kiln maintenance. Originally scheduled for the first quarter of 2025, the maintenance has been moved up to November to avoid potential disruptions from seasonal rains at the company’s Maracas Menchen mine in Brazil.

The Canada-based company now anticipates producing between 10,000 and 15,000 metric tonnes of ilmenite in the third quarter and 12,000 to 17,000 tonnes in the fourth quarter, significantly down from earlier projections of 21,000 to 24,000 tonnes and 24,000 to 28,000 tonnes, respectively. Sales expectations have also been reduced, with third-quarter volumes now forecasted between 5,000 and 15,000 tonnes, compared to a previous estimate of 19,500 to 21,000 tonnes.

Despite these adjustments, Largo confirmed that its vanadium pentoxide (V2O5) output and sales will remain unaffected. The company has been focusing on ilmenite as an additional revenue stream amidst declining global prices for V2O5 and ferro-vanadium. In the most recent quarter, ilmenite contributed $2.3 million, or 8.2 percent, to Largo's earnings, while vanadium products continue to be the main revenue driver.

Largo’s financial performance has been under pressure, with quarterly losses widening to $14.5 million from $6 million a year earlier, as revenues fell by 46 percent to $28 million. The company attributed the downturn to weak demand for ferro-vanadium, particularly due to challenging conditions in the European and Chinese steel markets.

Collins Aerospace Radar Production Expansion Strengthens US GaN Defense Electronics

Collins Aerospace

Collins Aerospace radar production is set to expand in Largo, Florida, as the aerospace and defense supplier invests in higher output for commercial aviation radar and multi-domain security solutions. The company plans to spend $26.5mn on the facility expansion.

Collins Aerospace radar production growth follows a $438mn contract awarded by the Federal Aviation Administration in January. The contract supports the FAA’s radar system replacement programme and gives Collins a major role in modernising US aviation surveillance infrastructure.

Collins Aerospace radar production will include Condor Mk3 and ASR-XM radar systems. These products use gallium nitride technology, making the expansion strategically relevant to compound semiconductors, defense electronics and high-performance radar supply chains.

The Largo facility already produces radars, satellite components and secure communications components. Full expansion operations are expected to begin by late 2026.

GaN Technology Raises Radar Performance and Materials Importance

Gallium nitride is becoming more important in radar and power electronics because it can outperform conventional silicon and gallium arsenide in demanding applications. GaN supports higher efficiency, higher voltage operation, faster switching and stronger high-temperature performance.

These characteristics are critical for aviation radar. Modern radar systems need higher power density, reliability and precision while operating in harsh conditions.

The Condor Mk3 and ASR-XM programmes therefore represent more than an equipment upgrade. They show how advanced semiconductor materials are becoming central to aerospace and defense capability.

GaN-based radar systems also strengthen the strategic value of compound semiconductor supply chains. As defense, aviation, satellite and communications systems become more electronics-intensive, access to qualified GaN materials and manufacturing capacity becomes a national security issue.

For Collins Aerospace, expanding Largo’s production capability improves its ability to support both civil aviation infrastructure and broader security markets.

FAA Radar Replacement Supports Domestic Manufacturing Capacity

The FAA radar replacement programme gives Collins a clear demand anchor for the Largo expansion. Long-term government contracts can support capital investment, workforce planning and equipment upgrades.

This matters because aerospace and defense electronics require qualified production environments, secure supply chains and strict reliability standards. Capacity cannot be added quickly without investment in specialised facilities and skilled labour.

The Largo site’s existing radar, satellite and secure communications work gives Collins an established base for expansion. The new investment should deepen that capability while supporting US domestic manufacturing.

The project also fits the broader reshoring trend in advanced electronics. Governments and major contractors are prioritising local production for systems tied to aviation safety, national defense and critical infrastructure.

For materials suppliers, the key signal is demand growth for GaN-related inputs and processing capability. Radar, satellite communications, power electronics and secure systems are likely to remain important demand channels for compound semiconductor materials.

The Metalnomist Commentary

Collins Aerospace’s expansion shows that GaN is moving deeper into critical aviation and defense infrastructure. The strategic bottleneck will not only be radar assembly, but reliable access to qualified compound semiconductor materials and manufacturing capacity.

China Vanadium Prices Weaken as Supply Rises and Steel Demand Slows

China Vanadium

China vanadium prices are under renewed pressure as higher spot availability, weak alloy demand and softer steel mill tenders weigh on the market. Domestic 98% grade vanadium pentoxide flake prices fell to 82,000-87,000 yuan/t on 8 May, their lowest level since 20 April.

China vanadium prices began to soften in late April after alloy producers slowed purchases and cut procurement bids. Most ferro-vanadium producers lowered feedstock buying levels after steel mill tender prices came in below market expectations.

China vanadium prices are also being pressured by rising output. Domestic vanadium production reached 56,040t of vanadium pentoxide in January-April, up 7.6% from a year earlier.

The market is now facing a classic supply-demand imbalance. Higher vanadium flake and slag production has increased spot availability, while steel-sector demand remains weak and export outlets are slowing.

Higher Flake and Slag Output Increases Spot Availability

China’s vanadium supply increased because stronger earlier prices encouraged producers to lift output from vanadium-bearing steel slag. Vanadium-containing steel slag production rose to 49,320t in January-April, up 8% from a year earlier.

Higher flake prices in the first four months improved margins for slag-based production. Domestic 98% grade vanadium pentoxide flake averaged 80,812 yuan/t ex-works during January-April, up 9.5% from a year earlier.

New capacity has also added pressure. Qinhuangdao Baigong Steel started a 10,000 t/yr vanadium pentoxide flake production line in Hebei province in February.

This additional output arrived just as downstream buying slowed. Major flake suppliers had not finalised some contracts by 8 May, while some alloy producers were buying only limited volumes at lower cash prices.

The increase in spot availability has changed buyer behaviour. Alloy producers are no longer rushing to secure feedstock because they expect further price weakness.

That expectation can reinforce the decline. When buyers delay purchases, sellers face more pressure to reduce offers, especially when inventories rise and steel demand remains poor.

Weak Steel Tenders and Export Slowdown Limit Demand

Ferro-vanadium demand remains the main drag on the vanadium market. Domestic 50% grade ferro-vanadium prices fell to 93,000-94,000 yuan/t ex-works on 8 May, their lowest level since 1 April.

Steel mill tender prices also declined. Prices paid by steelmakers fell to 94,000-95,000 yuan/t delivered, including VAT and payable by acceptance bill, down from late-April levels.

Steelmakers are lowering bids because steel margins remain weak. This is especially important for vanadium because much of its demand comes from alloying in rebar and other steel products.

China’s rebar production fell to 29.54mn t in January-April, down 8.6% from a year earlier, as the real estate slowdown continued to reduce construction-related steel demand.

Steelmakers purchased an estimated 6,865t of vanadium alloys in April, down 17% from a year earlier. This confirms that weaker steel consumption is now feeding directly into lower vanadium alloy demand.

Export conditions are also turning less supportive. China’s vanadium flake exports are expected to decline in the coming months as international production increases.

Canadian producer Largo more than doubled vanadium pentoxide output in the first quarter to 2,616t, supported by higher-grade ore and steadier processing at its Brazilian mine. Russian producer Evraz also started a new 15,000 t/yr vanadium pentoxide flake plant in March and is expected to ramp up by June.

These additions reduce the need for some overseas buyers to rely on Chinese flake. That weakens a potential outlet for excess Chinese supply.

The near-term outlook remains soft. Unless steel mill tenders recover or vanadium exports improve, rising spot availability will likely keep pressure on vanadium pentoxide flake and ferro-vanadium prices.

The Metalnomist Commentary

China’s vanadium market is being hit by the wrong combination: rising supply, weak rebar output and cautious alloy buying. The longer-term battery storage story remains attractive, but near-term pricing still depends heavily on steel demand and feedstock discipline.