7 Vanadium Stocks to Watch in 2022 (Does Vanadium Have a Future in Energy Storage?)

Although today vanadium is a niche metal mostly used to strengthen steel, it may have potential in the transition to clean energy. According to the Clean Energy Institute, vanadium flow batteries are a promising technology for large-scale energy storage. Learn how you can invest.

SustainFi   Updated March 1st, 2022

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What is vanadium?

Designated a “critical mineral” by the U.S. government, vanadium is a niche metal mostly used to strengthen steel. It can be found in mines alongside iron ore, uranium, or bauxite. Adding only 0.1% vanadium increases steel strength by up to 100% and reduces the weight of the required steel by up to 30%. But vanadium also has potential in battery storage technologies.

Vanadium flow batteries could potentially store energy for a long time. Energy storage is critical as the world transitions to intermittent renewables like wind or solar. After all, energy needs to be stored for when the wind isn’t blowing and the sun isn’t shining.

Where is vanadium used?

91% of vanadium goes to make steel stronger, though it is also used in chemicals and aerospace applications. But it is vanadium’s potential in grid energy storage that makes it interesting. Right now, only about 1% of vanadium is used to make batteries, but that could grow if vanadium-based battery storage sees broader adoption. Vanadium might also have potential if used in the cathodes of electric vehicle batteries. New sources of demand would clearly be good for vanadium miners.

Vanadium battery opportunity

Growth in renewables has led to investments in battery-based energy storage. Lithium-ion batteries, used in electric cars and smartphones, dominate, but vanadium-based batteries could also store power on a large scale.

Compared to lithium-ion batteries, vanadium flow batteries are longer-lasting, safer, and more durable. Vanadium batteries don’t degrade for 20+ years during the charge and recharge cycle, and they aren’t prone to catching fire. This makes them well-suited for utility-scale storage, though the exposure to volatile vanadium prices remains a concern.

Companies like U.K.-based Invinity Energy Systems are already selling vanadium flow batteries. Vanadium producers like Largo Resources and Bushveld Minerals are also stepping into vanadium battery production though high metal prices are good for miners and not so good for battery makers.

Is it worth investing in vanadium?

Thanks to the improving global economy, vanadium prices rose 60% to over $11/lbs over the past year. Sanctions on Russia, the second-largest vanadium producer after China, could lift prices further. At the same time, there isn’t a lot of new supply. Largo’s Maracas Menchen mine in Brazil is the only vanadium mine brought online in around 30 years.

Of course, past performance doesn’t guarantee future performance. The market for vanadium is small, and prices have been volatile. They soared in 2018, when China reduced production for environmental reasons, then crashed.

Which companies produce vanadium?

Several companies produce vanadium alongside other metals. For example, uranium producer Energy Fuels sources vanadium as a by-product of uranium.

Vanadium stocks

  • Energy Fuels (UUUU)
  • Largo Resources (LGO)
  • Neometals Ltd (RRSSF)
  • Bushveld Minerals (BSHVF)
  • Invinity Energy Systems (IVVGF)
  • Australian Vanadium (ATVVF)
  • TNG Limited (TNGZF)

Vanadium pure-plays tend to be small-cap, speculative stocks of companies in Australia or Canada. Some of them are also getting into vanadium flow battery manufacturing. You could also invest in a pure-play vanadium battery maker like Invinity Energy Systems.

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1. Energy Fuels (UUUU)

  • Market capitalization: 1.46 billion CAD
  • 1-year return: 62%

Although U.S.-based Energy Fuels is mainly a uranium miner, they are also the only U.S.-based vanadium producer. Vanadium is found next to uranium, and UUUU owns uranium and vanadium mines, such as La Sal Complex, Whirlwind Mine, and Rim Mine.

Energy Fuels also owns the only conventional vanadium mill in the U.S., the White Mesa Mill. The company invested in upgrading its vanadium production capabilities in 2018 and 2019, becoming the No 1 U.S. producer of vanadium in 2019.

Although UUUU is not a pure-play vanadium company, their core business, uranium, can fuel carbon-free nuclear energy. (Of course, nuclear power has its skeptics, too). Besides, Energy Fuels is getting into the rare earths business. Rare earths are minerals used in electric cars, batteries, and other technologies.

Although Energy Fuels does not expect to produce any vanadium in 2021, they hold about 1.7 million pounds of high-purity vanadium in inventory. They also own large quantities of vanadium resources at their standby mines.

2. Largo Resources (LGO)

  • Market capitalization: 893 million CAD
  • 1-year return: -25%

Canada’s Largo Resources is a pure-play vanadium producer with a vanadium mine in Bahia, Brazil. The Macaras Menchen mine produced 10,319 tons of vanadium in 2021, and Largo expects to increase production to 12,000-12,750 tons in 2022.

Largo is also working on commercializing vanadium redux flow batteries (VRFBs). They believe that VRFBs are competitive with lithium-ion batteries at longer durations.

Largo’s VCHARGE batteries, in development for about ten years, contain electrolytes that don’t degrade over the 25-year battery life. VionX Energy, whose technology Largo acquired, spent about $150m to develop the batteries. Largo expects to deliver the first batteries to Enel in the third quarter of 2022.

3. Neometals Ltd (RRSSF)

  • Market capitalization: 806 million AUD
  • 1-year return: 233%

Neometals is an Australian company specializing in metal recycling and recovery. They have three business lines:

  • Lithium-ion battery recycling. Neometals is commercializing a process to recover nickel, cobalt, and other valuable metals from spent and scrap lithium batteries. They expect to start commercial operations in early 2022.
  • Vanadium recovery. Neometals is evaluating a JV to recover vanadium as a by-product of steel manufacturing from leading Scandinavian steelmaker SSAB.
  • Titanium and vanadium mining. Neometals is looking into developing the Barrambie Titanium and Vanadium Project.

Although Neometals is not a vanadium pure-play, all their business lines could play a part in the transition to renewables.

However, the company is not yet making money from recycling batteries, and their vanadium projects are in the evaluation stage.

4. Bushveld Minerals (BSHVF)

  • Market capitalization: 142 million GBP
  • 1-year return: -60%

Bushveld Minerals is a low-cost vanadium producer with two mines in South Africa. One of the world’s three primary vanadium producers, Bushveld owns two vanadium processing facilities. The company produced 3,529 tonnes of vanadium in 2021, but they are trying to grow production to 5,000-5,400 tons by the end of 2022.

Through its Bushveld Energy subsidiary, the company is working on VRFB technology for the energy storage market. (They expect the energy storage market to reach $50 billion by 2027, though that includes other types of storage.) Vanadium battery storage could be particularly useful in places like South Africa, which don’t have a robust electric grid. Durable batteries paired with solar panels could be a solution.

Bushveld Minerals is listed on the London Stock Exchange.

5. Invinity Energy Systems (IVVGF)

  • Market capitalization: 108 million GBP
  • 1-year return: -46%

UK’s Invinity Energy Systems develops vanadium flow batteries for utility-grade energy storage. The company was formed through the 2020 merger of two flow battery providers, redT energy and Avalon Battery.

According to Invinity, vanadium flow batteries have “far greater capacity retention and less performance degradation than lithium-ion batteries.” The batteries can last for 25+ years with no capacity degradation.

Invinity’s batteries have already been deployed at 40 customer sites in 14 countries worldwide. So far, though, the company remains a small-cap stock. It reported only £406,000 in 2020 sales.

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6. Australian Vanadium (ATVVF)

  • Market capitalization: 135 million AUD
  • 1-year return: 80%

Australian Vanadium is an emerging vanadium producer developing the Australian Vanadium Project for steel and battery markets. The Project is an open-pit mine on a high-grade vanadium-titanium-iron deposit in Western Australia.

The company is currently finalizing a feasibility study with its consultants. Later on, it will move to final engineering and cost estimation.

Further, the company’s subsidiary, VSUN Energy, is developing vanadium redox flow batteries.

Despite its potential, Australian Vanadium is an early-stage mining company with very little revenue.

7. TNG Limited (TNGZF)

  • Market capitalization: 93 million AUD
  • 1-year return: -38%

TNG Limited is another emerging Australian vanadium mining company. The miner is developing its 100%-owned Mount Peake Project in the Northern Territory, Australia.

Discovered by TNG in early 2008, the deposit contains vanadium, titanium, and iron. It is located close to existing infrastructure (a railway, a highway, and an LNG pipeline).

TNG plans to produce high-purity vanadium pentoxide, titanium dioxide pigment, and iron oxide using its proprietary process. They forecast that they will need to spend $824 million AUD in capex and expect a pre-tax annualized return of around 33% during the project’s life. However, this forecast looks somewhat ambitious for such a tiny company.


NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.

🔔 Looking to invest in energy storage? Check out this list of energy storage stocks.

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Frequently Asked Questions

Who is the biggest producer of vanadium?

China is the biggest vanadium producer (and consumer), representing over 50% of global production. Other large producers are Russia, South Africa, and Brazil. Around 70% of vanadium is produced as a by-product of steel-making.