Best performing commodity sees 400% price rise in three years

A supply shortfall has pushed up the price of vanadium by 400% over the past three years – with the commodity reaching highs of $120 per kilogram. It was one of the best performing commodities in the battery metal sector, according to Fortune Mojapelo, CEO of Bushveld Minerals, a vertically integrated vanadium producer with all its operations based in South Africa. He said vanadium demand was anchored to steel, boding well for the metal’s future. “The steel industry
accounts for around 90% of total vanadium consumption,” he said. Primarily used as a steel alloy, its use in battery storage was a fast-growing area of growth. According to Mojapelo, expansion plans completed in 2018 increased Bushveld’s production to 3 750 metric tonnes of vanadium (mtv). The third phase of extension that is set to be completed this year will up production to 5 000mtv, but ultimately the company is targeting a total of 10 000mtv, extending the mine life significantly.
The company’s Vametco mine currently enjoys a significant 3.5% market share of the global vanadium market, and this is expected to grow to more than 5% on completion of its three-phased expansion project. Combined with its other two mines, Brits Vanadium and Mokopane Vanadium, the company is aiming to provide 10% of the world’s vanadium. “We have a 440-milliontonne high grade resource in the Bushveld complex and growing production is the priority,” said Mojapelo.