Why All The Vanadium Hype?

Written by Nick Hodge
Posted November 14, 2018 at 11:11AM

I’ve been pounding the table pretty hard on vanadium.

And rightly so.

The vanadium price has increased by more than 1,000% since 2016 — from $2.50 to nearly $34.00 per pound. Vanadium stocks are making people wealthy.

In two weeks, my pounding will come to an end.  

As I explain in the report I’ve been circulating, there is a specific Chinese catalyst that is driving the current frenzy.

This month, the Chinese government is requiring much more vanadium to be used in its steelmaking process.

China produces ~50% of all the world’s vanadium, and has been a major global exporter for years.

The move it’s making this month will turn China from a vanadium exporter to a vanadium importer.

That’s the short-term story, and the reason I think you need to know about vanadium stocks by the end of this month.

The longer-term story is vanadium energy storage. Large-scale vanadium batteries have proven much more effective for grid storage than lithium or other battery formulations. The vanadium gives the batteries — called redox flow — unique characteristics that allow them to store and discharge more electricity more often without degradation.

This is critical for the implementation of clean energy sources like wind and solar, for which effective and economic energy storage has been a main hurdle. This allows the electricity to be stored and used when needed, because the wind doesn’t always blow and the sun doesn’t always shine.

Mass adoption of vanadium redox flow batteries would topple the already precarious supply/demand balance.

Add to that the narrative that is true of so many key metals and minerals: the fact that the U.S. produces little to none of it.

As you read this, companies are gearing up to produce vanadium in the U.S.

Some are reprocessing old tailings for which recovering the vanadium wasn’t economic years ago. Others are going after ore left in the ground that is now worth extracting because of record vanadium prices.

Still, like cobalt and lithium, while we know where vanadium is — getting it out of the ground and scaling up production is easier said than done.

And that’s why quality early companies in the sector get so rewarded in the market.

As it stands, there are no active primary vanadium-producing mines in the United States.

As I explain in the vanadium sector report here, one company has the largest measured and indicated vanadium resource in the U.S.

It has been designated for “fast track” permitting by the Trump administration, with a scheduled path to production.

All that makes it the most advanced vanadium project in North America, and the reason investors have been pouring in.

Full report here.

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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