Top 3 Vanadium ASX Stocks To Invest In Right Now!
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Stocks Down Under’s Team Of Experts Has Put Together Our Top Vanadium Shares Picks To Invest In Right Now!
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Vanadium's Market and Production
The vanadium market is growing steadily, influenced by two factors. First, its predominant use in the steel industry today (accounting for 89% of vanadium's use) and second, the emerging demand for vanadium redox flow batteries. Although the latter is only responsible for 4.3% of vanadium consumption worldwide in 2022, that will account for an increasingly larger share in the future. Granted, it is not the most-used commodity by any means, even in energy batteries.
Just 111,000 tonnes were used worldwide and only 5,000 of this was used in batteries according to CRU and Project Blue respectively. However, the latter figure is well ahead of the 2,900 metric tonnes just a year prior. And CRU expects total vanadium demand to double by 2032, driven mostly by its use in batteries - specifically Vanadium Redox Flow Batteries (VRFBs) that are used in large scale, battery storage systems that store excess power from the grid for use during peak demand periods.
They are considered safer, more scalable and longer lasting than lithium batteries. 85% of the world's production is concentrated in just three countries: Russia, China and South Africa. But if the top ASX vanadium stocks have their way, this will change.
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Introduction to Vanadium
Vanadium, a critical metal, is soaring in the commodity markets. The steel industry, which uses vanadium to create high-strength steel, is largely responsible for this growth. However, the rising demand for vanadium redox flow batteries in the renewable energy sector also contributes significantly.
Vanadium's Versatility
Primarily, vanadium is used in steel making to produce strong, lightweight steel alloys. This attribute has led the steel industry to continue its consumption of vanadium, ensuring sustained vanadium demand. However, its uses extend beyond this industry, including applications in nuclear engineering, synthetic rubber, and textile dyes.
Vanadium and Energy Storage
Importantly, vanadium redox flow is pivotal in the energy storage sector. Unlike traditional lithium-ion batteries, vanadium flow batteries can store energy from solar and wind power, integrating seamlessly with the power grid.
They are expected to play a key role in renewable energy storage, challenging the dominance of lithium as the preferred battery metal.
Frequently Asked Questions
Vanadium is a hard, silvery-grey metal often used to strengthen steel and other metal alloys. The majority of the vanadium produced is used in the steel industry. However, due to its unique properties, vanadium is also increasingly used in vanadium redox flow batteries for energy storage.
Our Top 3 ASX Vanadium Stocks
Australian Vanadium Ltd (ASX: AVL)
AVL, the force behind the Australian Vanadium Project and Gabanintha stands as a top contender in the vanadium stocks ASX. AVL has secured a significant portion of the high-grade Gabanintha deposit, with an inferred resource of 183.6 million tonnes at 0.76% vanadium pentoxide. AVL's annual production target stands at approximately 5,700 tonnes of vanadium pentoxide, marking a significant contribution to the global vanadium market.
Technology Metals Australia (ASX: TMT)
TMT's work on the Gabanintha project and its successful production of vanadium pentoxide flake has landed it in the top picks of vanadium stocks. TMT boasts substantial assets, with the Gabanintha Vanadium Project demonstrating a measured resource of 21.5 Mt at 0.9% vanadium pentoxide. The company's strong emphasis on technological innovation and exploration has enabled it to maintain robust production figures.
King River Resources (ASX: KRR)
King River Resources, leading the Speewah vanadium project, provides another excellent investment choice in vanadium stocks. KRR leads the Speewah Vanadium Project, home to one of the world's largest vanadium deposits. KRR recently reported a mineral resource of 4.7 billion tonnes at 0.30% vanadium pentoxide for the Central deposit. The company has targeted an annual production of approximately 7,500 tonnes of vanadium pentoxide from this project.
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