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Vanadium Stocks Are Bleeding: Is Now the Time to Buy?

Written By Mike Munno

Posted January 16, 2024

Vanadium stocks are an unsung hero of the mining industry. You don’t usually see vanadium stocks on the front page of Forbes or other investing media outlets. Often overlooked, this niche of stocks has proven to reward investors handsomely. They have also been known to be a major stressor for investors. Especially in the last few years.

But that doesn’t mean the belief in vanadium stocks and the metal itself isn’t justified. Before we get into some of the vanadium stocks turning worth watching, let’s break down exactly what vanadium is. 

Vanadium is a transition metal with a bright future, to say the least. It is a chemical element with the symbol “V” and has an atomic number of 23. This transition metal is typically found in combination with other minerals, often in various ores.  It is used in a wide variety of applications, including steelmaking, energy storage, and aerospace. As the demand for vanadium continues to grow, so too does the potential for investors.

Vanadium Stocks

One notable application of vanadium is in vanadium redox flow batteries (VRFBs), a type of rechargeable flow battery. These batteries are used for grid energy storage, providing a means to store and release electrical energy efficiently. But we’ll discuss that more later. 

As a versatile metal with remarkable properties, vanadium is gaining significant attention in the investment world. But while vanadium seems to gain in popularity, the stocks lose ground. This article delves into the realm of vanadium stocks, shedding light on their potential and why they have become a hot topic for investors. If you’re considering investing in the mining sector, vanadium stocks might be worth your attention. 

The Rise of Vanadium and Vanadium Redox Flow Batteries (VRFBs)

The increasing global demand for renewable energy solutions, particularly in the solar and wind sectors, has led to a surge in the need for energy storage systems. This surge, in turn, has sparked a rising interest in vanadium, a crucial element for the development of high-performance redox flow batteries.

Vanadium’s unique ability to store and release energy efficiently, coupled with its long lifespan and high charge-discharge efficiency, makes it an ideal choice for RFBs. Furthermore, vanadium’s high heat resistance and durability make it indispensable in the construction of steel. This reinforces vanadium’s demand in industries such as aerospace, automotive, and infrastructure. 

Just take a look at how VRFBs compare to lithium batteries:

vanadium battery

Needless to say, The rise of vanadium is creating new opportunities for investors. At the end of 2023, the global vanadium market was valued at $46.2 billion. Experts anticipate the vanadium market to reach $105.4 billion within 10 years. One of the main reasons there is so much optimism regarding Vanadium is its involvement in the growing EV industry.

Investors are increasingly favoring vanadium stocks, and experts anticipate a continued rise in the price of vanadium in the coming years. But will vanadium stocks follow a similar trend? Let’s explore below. 

Vanadium Stocks Worth Watching

Bushveld Minerals (OTC: BSHVF) is a South African mining company that is one of the world’s largest producers of vanadium. The company’s primary asset is the Bushveld Complex, which is the world’s largest vanadium-titanium-magnetite (VTM) deposit. Located in South Africa, the Bushveld Complex holds an estimated 1 billion tons of vanadium.

This company also has interests in other vanadium projects, including the Vametco project in South Africa and the Platreef project in South Africa. The Vametco project currently operates as a vanadium mine, while the Platreef project represents a future major vanadium producer in its development stage.

Bushveld Minerals is a well-positioned company to benefit from the growing demand for vanadium. The company has a large resource base and is developing several projects that are expected to become major vanadium producers. Bushveld Minerals is also a leading supplier of vanadium to the steelmaking and energy storage industries.

Bushveld Minerals Ltd. - Vanadium Stocks Chart

Largo Inc. (NASDAQ:LGO) is a Canadian mining company that is developing the world’s largest vanadium deposit, the Maracás Menchen Mine in Brazil. The Maracás Menchen Mine is estimated to contain over 1 billion pounds of vanadium, making it the largest vanadium deposit in the world.

Largo Resources is a well-positioned company to benefit from the growing demand for vanadium. The company has a large resource base and is developing a mine that is expected to become a major vanadium producer. Largo Resources is also a leading supplier of vanadium to the steelmaking and energy storage industries.

Largo Inc. - Vanadium Stocks Chart

Vanadiumcorp Resource Inc. (OTC: VRBFF) is a Canadian mining company that is developing the Gibellini vanadium project in Australia. With an estimated vanadium reserve exceeding 200 million pounds, the Gibellini project ranks among the world’s largest vanadium projects.

This Canadian-based company focuses on developing innovative and sustainable vanadium extraction methods. With a diverse portfolio of vanadium projects, VanadiumCorp aims to meet the increasing demand for this valuable metal.

VanadiumCorp Resource Inc. is a well-positioned company to benefit from the growing demand for vanadium. The company has a large resource base and is developing a project that is expected to become a major vanadium producer. VanadiumCorp Resource Inc. is also a leading supplier of vanadium to the steelmaking and energy storage industries.

Vanadiumcorp Resource Inc. - Vanadium Stocks Chart

As you can see from the charts above, vanadium stocks have had a rough go the last few years. To put it simply, vanadium stocks are bleeding. We can see the dips clear as day, which begs the question: Is now the time to buy? Some would argue that it’s the perfect time to scoop up shares of vanadium stocks. 

If this were indeed the bottom of the vanadium market, there are many advantages to investing in vanadium stocks. 

Potential Advantages of Investing in Vanadium Stocks

Investing in vanadium stocks offers several potential advantages. A lot of vanadium stocks are considered small or micro-cap stocks. Investors like smaller cap stocks because they allow for more “get rich quick” opportunities. Since a lot of these vanadium companies are beaten down, the shares trade for significantly less. Because shares trade for significantly less, you can buy a lot more of them. 

Let’s say you find a micro-cap vanadium stock that you believe has the potential to grow much higher. You invest $5,000 into a micro-cap vanadium stock trading for $0.05. This enables you to have 100,000 shares. Now, let’s say that vanadium stock announces a new vanadium discovery or patent and shares skyrocket to $5, $10, or even $15 per share… While those might not be very high share prices compared to NVDA or AMZN, your 100,000 shares (that you got for $5,000) are now worth a possible $100,000, $1 million even, or maybe as high as $1.5 million. Maybe more if shares exceed $15. 

Micro-Cap Vanadium stocks success story

This is a purely hypothetical scenario, but it happens more often than you think. That is one of the main attractions to vanadium stocks like the ones listed above. 

Some other advantages of investing in vanadium stocks include gaining exposure to a growing market driven by renewable energy and infrastructure development. Some other advantages of investing in vanadium stocks include: 

  • Growing Demand: The increasing adoption of renewable energy and the subsequent need for energy storage systems position vanadium stocks as a lucrative investment opportunity. As the demand for RFBs and steel continues to rise, so does the demand for vanadium.
  • Diversification: Investing in vanadium stocks provides an opportunity to diversify one’s portfolio. Vanadium’s connection to both the renewable energy and steel industries allows investors to tap into multiple sectors with promising growth potential.
  • Limited Supply: Vanadium is relatively rare, with few viable sources of production worldwide. This limited supply, combined with its increasing demand, makes vanadium stocks an attractive proposition for investors seeking exposure to a commodity with limited availability.
  • Price Volatility: Vanadium prices have exhibited notable volatility in recent years. While this volatility may present risks, it also opens avenues for substantial returns on investment for astute investors who can capitalize on market fluctuations.

Final Thoughts On Vanadium Stocks

Simply put, vanadium stocks offer an attractive investment opportunity in today’s market. The rising demand for renewable energy storage and the essential role of vanadium in steel production make it a lucrative market.

Investing in vanadium stocks allows diversification and active participation in multiple sectors. Limited supply and price volatility create the potential for significant returns. Furthermore, technological advancements and global infrastructure development further boost the growth prospects of vanadium stocks.

However, it’s crucial to conduct thorough research, stay informed, and evaluate companies’ financial health to mitigate risks. Investing in vanadium stocks aligns with sustainability goals and supports the transition to cleaner energy. It presents an opportunity for financial gains while contributing to a greener future. Vanadium stocks connect investors to renewable energy and steel industries, with active participation and potential for portfolio diversification. 

Alex Koyfman recently joined the Angel Research Podcast to discuss graphene, vanadium, and other trends. to watch for 2024. If you’re interested in learning more about Alex’s top vanadium play, I highly encourage you to give that podcast episode a watch. 

If you don’t have time to watch the full podcast episode right now but want to learn more about Alex’s top vanadium play, you can do so right here.

Also, be sure to return to Energy and Capital over the coming weeks as Alex plans on doing a dedicated series focused solely on Vanadium. 

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