November Deadline to Drive Vanadium Prices Even Higher

Written by Nick Hodge
Posted October 23, 2018 at 8:00PM

One metal is defying the general gloom of the mining markets.

Its price is up more than 800% in the past two years and is now near an all-time record high.

All-time is a long time for this metal. It has roots in the BC era as the material that allowed Damascus swords to be so strong and flexible.

In the modern era, it was one of the ingredients that allowed Henry Ford’s “Model T” to be such an early hit with the masses. It was even touted in early advertisements for the car.

I’m talking about vanadium.

And you might have seen it in the headlines recently because prices for it are truly reaching new highs on what seems like a daily basis at this point.

It has created a media and investor frenzy reminiscent of lithium and cobalt. And it’s frenzies like this, though they can be short-lived, where a lot of money is made in the mining world.

Vanadium Headlines

The short version of this boom is that vanadium is used as a strengthening agent in steel — the same way it was in Damascus swords all those years ago. Globally, a certain percentage of vanadium is required to be added to steel for this purpose.

In November — a few days from now — China is increasing the amount of vanadium required in steel produced there, effectively doubling its internal demand.

China makes half the world’s steel and also produces the bulk of its vanadium. And this change is expected to turn it from a vanadium exporter to an importer.

This alone is enough to cause the dramatic run in vanadium prices we’re seeing now.

Vanadium PricesBut there is another factor at play.

While about 90% of vanadium demand is for use in steel, it has a new and growing use as a major battery fuel that is making markets doubly excited.

Vanadium redox flow batteries are proving to be big winners in the industrial-scale battery world, where they can store vast amounts of intermittent solar and wind energy and release it to help even out peaks and troughs of grid demand.

Take it from this recent Bloomberg article that explained why vanadium is the “Best-Performing Battery Metal of the Past Year”:

Currently, the dominant form of energy storage is lithium-ion technology, but there are advantages to vanadium-flow batteries. They last longer and can be charged and discharged repeatedly without any significant drop in performance. They are also easy to recycle and good for projects where space isn’t an issue.

“I don’t think anyone would dispute that it’s superior to lithium-ion in large-scale grid applications,” said Anthony Milewski, a managing director at Pala Investments Ltd. in Switzerland.

With the shift in Chinese steel demand and a mounting demand from batteries, the investment world is wondering where new supply will come from.

There isn’t a single primary source of the stuff in all of North America.

But that’s why markets do what markets do… The price of vanadium will rise until enough new supply is incentivized to come online to quell concerns.

And it’s these times you want to be in the “hot commodity” stocks.

Just like I made my readers over 1,500% in the lithium run, I’ve now picked my horse for the vanadium race.

It has fast-tracked permitting designation from the Trump administration and is working on bringing North America’s first primary vanadium mine into production.

I have all the details in this new report.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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