Vanadium
CRITICAL MINERAL
Vanadium Defined
Vanadium is a grey, soft, ductile high value metal whose main application is in the steel industry.
As a steel alloying element, vanadium offers an excellent combination of strength, corrosion resistance, weldability and fabricability and improves the tensile strength of steel, making it an effective alloy for strengthening construction steels (rebar).
Vanadium also has a grain refining and dispersion hardening effect in tempering steels, which provides for corrosion and abrasion resistance to steel alloys, making them suitable for use in extreme temperature environments. Its high strength to weight ratio makes it an important component in the manufacturing of automotive and aviation vehicles where fuel efficiency is an important factor.
Other uses include:
• Most significant is its use in utility scale Energy Storage Battery Systems.
• Application in vanadium-containing titanium alloys, and
• Various chemical uses.
Supply and Demand:
Vanadium supply is also concentrated both geographically and in terms type of production. Approximately 80 % to 90 % of the global supply of vanadium is from three countries, namely China (53 %), South Africa (20 %) and Russia (17 %).
The majority of the vanadium produced (approximately 64 %) is from vanadium slag produced as a co-product in melting vanadium-bearing magnetite iron ores (co- producers) during the steel production process.
The slag is further processed via a roast-leach process in countries with ferrovanadium conversion facilities (e.g., Czech Republic, South Korea and Japan).
Approximately 20 %) is produced directly from vanadium-bearing magnetite ores with sufficiently high vanadium grades (primary producers), mostly located in South Africa, via a roast-leach process.
CRITICAL MINERAL
BG Global's Take On Vanadium
Despite being a lesser-known metal, its malleability, ductility, and corrosion resistance make it highly significant in the manufacturing sector. Vanadium rarely exists as a free element in nature but can be found in about 65 different minerals. The most important minerals for Vanadium include magnetite, vanadinite, carnotite and patronite. Additionally, some crude oils and phosphate rock contain it (Pedersen, 2017). It is thermally insulating and electrically conductive.
CRITICAL MINERAL
Occurence & Production
Vanadium is the 22nd most abundant element in the earth’s crust, producing more than 65 minerals. Vanadium resources globally are estimated at 63 million metric tons with the majority located in China, Russia, South Africa, and Australia. North America, Canada, Brazil, Finland, and Madagascar also have vanadium deposits. World vanadium reserves (that part of the identified vanadium resource that meets specified minimum physical and chemical criteria related to current mining and production practices) are estimated at about 15 million metric tons and it is likely sufficient to meet vanadium needs into the next century at the present rate of consumption. More than 95% of global Reserves are in China, Russia, South Africa, and Australia. Titaniferous magnetite ore is mined in South Africa and China and processed for vanadium extraction. Titaniferous magnetite ore is also processed in steelmaking operations in China, Russia, and South Africa
South Africa
South Africa’s vanadium mining output has shown fluctuations, reaching 13,000 MT in 2017 before dropping to 7,700 MT in 2018, and slightly increasing to 8,000 MT in 2019. Bushveld Minerals (LSE:BMN) and Glencore (LSE:GLEN, OTC Pink:GLCNF) are the primary contributors to South Africa’s vanadium production. Bushveld Minerals operates three assets in South Africa’s Bushveld Complex, which collectively make up its vanadium mining division.
Brazil
Brazil’s vanadium production saw a fluctuation, rising to 8,400 MT in 2017 before dropping to 5,500 MT in 2018. However, it slightly increased to 7,000 MT in 2019. Largo Resources (TSX:LGO, OTCQX:LGORF), touted as the sole pure-play vanadium producer, largely drives Brazil’s production, notably through the Maracas Menchen vanadium project, known as the world’s highest-grade vanadium mine.
China
In 2019, China maintained its position as the top vanadium-producing nation, with an output of 40,000 metric tons (MT), comparable to previous years. This substantial production far exceeds that of any other country. Vanadium is primarily used in steel production, and although China has experienced a decline in steel output, it remains the largest consumer of vanadium worldwide.
Russia
In 2019, Russia maintained its position as the second-largest vanadium producer globally, with an output of 18,000 metric tons (MT), unchanged from 2018. Russia also holds the second-largest vanadium reserves worldwide, totaling 5,000 MT. EVRAZ KGOK, a division of EVRAZ, plays a significant role in vanadium mining within Russia.
CRITICAL MINERAL
Application & Uses
Iron & Steel Industry
Vanadium is crucial in steelmaking, primarily enhancing steel's strength, toughness, and heat resistance. This vanadium-infused steel finds wide application in industries like machinery, automobiles, shipbuilding, railways, aviation, bridges, electronics, and defense. Examples include High-strength low-alloy (HSLA) steel, construction threaded steel, high carbon steel wire, and rails.
Aerospace Industry
Vanadium plays a crucial role in titanium-aluminum-vanadium alloys, typically containing 8-10% vanadium, widely used in aircraft engines, aerospace cabin frameworks, missiles, steam turbine blades, rocket engine shells, and various other applications. Additionally, vanadium serves as a stabilizer and strengthening agent in titanium alloys, enhancing their ductility and plasticity. Vanadium alloys find applications in magnetic materials, cemented carbide, superconductors, and nuclear reactor materials.
Chemical Industry
Vanadium finds primary use in the chemical industry as a catalyst for sulfuric acid and vulcanized rubber production. Additionally, it's employed to reduce nitrous oxide emissions in power plants. Other chemical applications of vanadium include its use in catalysts, ceramic colorants, developers, desiccants, and various other applications.
Battery Industry
The vanadium redox battery, developed at Australia's University of New South Wales in the 1980s, offers several advantages over other energy storage options. With high power, capacity, efficiency, and long life, along with fast response and low cost, it's ideal for various applications like solar and wind energy storage, electric vehicles, emergency power systems, grid energy storage, and more.