Vanadium pentoxide demand from vanadium battery industry to climb
----Interview with Terry Perles
Director
U.S. Vanadium Holding Company LLC
- U.S. Vanadium Holding Company LLC produces a wide range of vanadium oxides, vanadium-based chemicals and alloys used in the global chemical, catalyst, and titanium alloy, vanadium flow battery industries. The company plans to produce around 3,000t of vanadium oxides in 2024, compared with about 2,000t in 2023. The company aims to increase annual output to around 8,000t in 2027.
- Asian Metal: Welcome to accept my interview, Mr. Terry. Please introduce your company and your main business briefly firstly.
- Terry: U.S. Vanadium Holding Company LLC is a partnership of individual and venture capital investors who own and operate vanadium processing facilities in Benton Arkansas and Hot Springs Arkansas. US Vanadium produces extremely high purity vanadium pentoxide and V2O3, and well as a host of downstream vanadium chemicals including vanadium electrolyte for Vanadium Flow Battery applications.
- Asian Metal: Would you please introduce the current mainstream downstream industries of vanadium pentoxide powder in America?
- Terry: Vanadium pentoxide downstream applications in American market mainly include vanadium flow battery applications, titanium alloy, oxidation catalyst, petrochemical applications including Benfield and Stretford processes, pollution control catalysts and synthetic rubber producers. Our vanadium pentoxide is widely applied in above industries.
- Asian Metal: Do you think the American vanadium pentoxide powder market would see any new application in the coming year.
- Terry: Demand for high purity vanadium pentoxide and V2O3 will expand in this year as a result of growing demand for vanadium flow batteries (VFBs). The titanium alloy market continues to expand following a very bad environment following COVID-19 and demand of high purity vanadium in titanium alloys will continue to expand in 2024. Longer term growth in demand for high purity vanadium oxides will depend upon the development of the VFB industry as well as new applications including the use of vanadium in both cathode and anode compositions for lithium-ion batteries.
- Asian Metal: The Chinese vanadium pentoxide powder market witnessed soft demand and sliding prices over the past month. How about the vanadium pentoxide powder demand in America?
- Terry: In 2023, vanadium products consumption volume in American market recorded around 10,000t pure vanadium, around 80% of these products were applied into steel industry. The American vanadium pentoxide powder market saw weak demand over the past month. The availability and price of Chinese exports of vanadium pentoxide will drive western market conditions. The western world is following China in terms of vanadium market conditions.
- Asian Metal: How do you predict the vanadium pentoxide powder demand trend in the coming year?
- Terry: Demand for high purity vanadium pentoxide and V2O3 will be strong in the coming year and beyond on the back of the VFB application, recovering titanium alloy market and ongoing chemical and catalysts markets. Our company is expanding production of high purity vanadium pentoxide and V2O3 in an effort to keep up with growing demand. We will produce around 3,000t of vanadium pentoxide and V2O3 this year. In 2025, we plan to increase the output into around 4,000t. We aim to increase output to around 8,000t till 2027.
- Asian Metal: What’s the current vanadium pentoxide powder 99.6%min mainstream prices in America? How did it fluctuate over the past year?
- Terry: The current mainstream prices for commodity grade vanadium pentoxide in western markets hovered at US$5.60-7.00 per pound vanadium pentoxide. High purity vanadium pentoxide sells at a premium to this price for commodity grade vanadium pentoxide, and the level of the premium is a function of the specification required. The prices showed downward trend in general over the past year due to insufficient demand.
- Asian Metal: How do you predict the vanadium pentoxide price trends in the coming year?
- Terry: In 2023, China expanded vanadium production by perhaps 25%. At the same time the demand for vanadium in Chinese rebar was very weak. There is strong growth in demand for VFBs, but if the demand for vanadium in the Chinese rebar market does not improve it is difficult to see any upward pressure on the vanadium market.
- Asian Metal: Would you please share your opinion about the vanadium pentoxide supply and demand pattern in the coming year?
- Terry: In 2024, vanadium pentoxide market will start off very soft and we do hope to see some improvement in the second half of the year with growing deployment of vanadium in VFB systems. The Chinese rebar production volume changes will be a major driver to the market in 2024.
- Asian Metal: Thanks for your wonderful sharing, and we wish US Vanadium Holding a prosperous business.
- Terry: Thanks for your interview.
