At current/higher prices (which I'm sure investors here are speculating will happen for a couple of years or so), IMO all product will go to the steel market. VRB do not make much financial sense (compared to lithium at the anticipated higher prices). Should the price drop however from today's level, there is a decent chance VRB's will gain traction and this will likely set a much higher floor in the price for vanadium which will be great long term for those that get producing.
One interesting point I think could have some impact on demand is Vanadium to be used in EV's. Not the battery but the metal used to create the chassis. EV's are heavy and require more metal than an ICE to support the batteries and itself, so I expect to see vehicle manufacturers trying to use more Vanadium in vehicle construction as there are weight and volume/space savings that can be created. Weight saving has the added bonus of extending range for EV's, so it is something that will be pursued aggressively, especially as EV's become very mainstream which is getting very close. I know this will be minimal in comparison to the general steel market, but it is much more chance in the next few years of adding to demand compared to VRB's IMO.
TNO Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
