Vanadium Vs Lithium
I think many of you will be interested in the summary at the bottom of this message, which highlights various data points about the Vanadium markets and applications versus Lithium. I will first mention how I plan to profit and which companies interest me most then will get into general data on the two metals.
There are not many ways to play it, but Largo Resources is a producer with operations out of Brazil and is trading in the US/Canada (LGO). Although my investment of choice (I own a decent bit of Largo and leap call options) is clearly Phenom Resources (PHNM/PHNMF), which owns the largest and highest grade primary Vanadium deposit in North America (near surface) and it is growing.
I expect Phenom to spin out their gold/copper assets into a new public company sometime in the late 2nd quarter and we should hear about their intentions soon. That means all shareholders of PHNM/PHNMF will be getting a piece of that company`"for free" and it allows for more concise raising of capital and new investor interest in both entities. The Vanadium price is up 40% since November 1st ($7.30 to $10.20 per lb) and I believe we've seen this cycle bottom already.
The surfacing Vanadium centric technology applications that I'm seeing are astounding! Here's just one new finding: The strange, brain-like memory of vanadium dioxide - Big Think
Did you read that?! It's short but opens up possibilities of potential demand and brand new applications in glass, phone/computer screens, and who knows what else....
As usual, we snooze and we will lose! I strongly encourage you to have exposure to V205 BEFORE things start popping off. Various projections show extremely robust growth rates for Vanadium usage starting NOW over the next decade. This potential 30-40% CAGR will be driven by adoption of industrial scale redox flow batteries (VRFB), additional usage in stainless steel (add 2% V205=approximately double the strength), various solid state battery applications, and I believe strongly, in the electric vehicle battery market (which obviously is not included in any current growth projections-it will SHOCK the market if I'm correct/early on this view).
The industrial market for VRFB's should be comparable to the electric vehicle market in size, currently dominated by Lithium-ion batteries, over the next 5-10 years. However, I believe that primary Vanadium style batteries will disrupt Lithium for the standard slot in EV's as well. This will take time, and I will be able to elaborate on new technologies surfacing out of Asia very soon in more detail. Know this, there is a company showing a full EV battery recharge in less than 30 seconds! Besides claims of nearly twice the distance on that full charge vs Lithium, half the cost, a 20-25 plus year life cycle with zero need to replace the Vanadium, and most importantly, it removes the significant inflammatory/explosion risks inherent in Lithium batteries. These claims are extraordinary but I think they are real! Think about that for a moment.
PHNM went to $2 twice in 2018 with just an option and a 43-101 resource at Carlin South. Now, it's PEA stage, over 50% bigger, and they own it outright with all payments/earn-ins completed. I remain very excited about their potential to find a mega gold system underneath the Vanadium deposit. But, just the asset we already have of this fascinating clean battery metal in another strong Vanadium market (coming-imminent!) could drive the share price much higher this time.
Scroll through the summary below and I would encourage you to click on source links/articles to really begin to get more of a feel of what is happening here. It won't take you long, and it might be the difference in terms of whether you take this theme seriously or not. This is not a comprehensive list but you'll know more about Vanadium than 99.8% of other investors!
Lithium vs Vanadium
Lithium-
Flammable
Life span is short
Overall bad for the environment
Requires protection from usage to maintain safe operation
Vanadium-
100% Recyclability
50% less CO2 emission to Lithium
Average life span of VRFB is 25 years with minimal maintenance
A wide range of unexplored markets
100% discharge of energy
Production/Supply
2020 most recent numbers (measured in metric tons-MT)
China- 69,960
Russia- 19,533
South Africa- 8584
Brazil- 7582
India- 10
United States 17
Amount Per year produced (measured in metric tons-MT)
2016- 85.43
2017- 81.89
2018- 84.95
2019- 98.72
2020- 105.78
Demand
Global consumption of Vanadium has increased 7% from 2020 to 2021.
Predominantly use of the increase is the steel industry 92% usage of Vanadium
Battery industries for vanadium leaves in tremendous upside. Markets expect a demand to grow to a minimum of CAGR (compound annual growth rate) 41% by 2031.
Usages
Steel-
Refine structures of low alloy steel
Reduce the sensitivity of steel
Increase its strength and toughness
Battery-
Vanadium reflux flow battery (VRFB’s)
The Vanadium Redox Flow Batteries Market was valued at USD 171.91 Million in 2020 and is projected to reach USD 697.91 Million by 2028.
What it is? It functions as a storage for energy through solar or wind. It is more efficient than lithium.
How it works? It goes through a process of separating the electrolytes negative and positive storing them through the solar or wind energy provided. At the same level of a lithium battery, it is longer lasting. Lithium is at about 3000 cycles of usage life of 10-15 years. Vanadium is at about 15000 cycles at a lower maintenance it would last about 25 years.
Efficiency- 50% cost reduction of usage
Vflow- length of energy
Small 6hrs
Large 10hrs
EV Charging Station
Locations- Korea, Australia
Vsunenergy, Powermyhome, Vflow
Car-
Vanadium in car batteries were being used in Hybrid and EV
Car makers when done right will be able to charge EV within 6 min
10 years ago there was many developments but no funding in order to continue these. They developed a car that would go 375 miles on a full charge.
Refer to Vflow Spec information
Markets with Minimal usage/possibility-
Tools
Axels
Pistons
Ceramics as pigments
Space Vehicles
Nuclear reactors
Aircraft carriers
Why the excitement over Vanadium?
Opportunity-
Cost of Lithium is 10x of what it was.
With the EV demand there is only enough supply of lithium until 2030
Vanadium charges faster, last longer, and is more powerful than lithium
Storage capacity will have a to increase 5x by 2050 in the US (video :57)* Contract with California 134 million contract
90% of vanadium is used for steel, only 12% is used for cars/EV will need them (Safety) (:18)**
Vanadium to grow to a minimum of CAGR (compound annual growth rate) 41% by 2031. Excluding the EV space.
Solid State Battery Patent- Source
Leads to a whole other market Electronics (see examples 1 and 9 bottom of the page)
10.4 Billion dollar market in computers- Vanadium being used as a glass memory vs. crystalline. ***
Health****
Unexplored avenues of what Vanadium can really do.
Sources
https://www.utilitydive.com/news/california-funds-60-mwh-tribal-long-duration-storage-project-with-nations/636098/ - California 134 million contract
* https://youtu.be/pQlG46F87Fs
** https://youtu.be/gvmt4E7Ye2c
*** https://bigthink.com/the-future/vanadium-dioxide-glass-memory/