Largo Inc. (Largo) produces and supplies of vanadium products.
The company is one of the world's preferred vanadium companies focused on the production of vanadium pentoxide (V2O5) at the company's Maracás Menchen Project, located in Bahia, Brazil, being the company's sole material project for the purposes of NI 43-101. The Maracás Menchen Project consists of the operating Maracás Menchen Mine (Campbell Pit) and includes a number of other deposits being explored throughout the project area. The...
Largo Inc. (Largo) produces and supplies of vanadium products.
The company is one of the world's preferred vanadium companies focused on the production of vanadium pentoxide (V2O5) at the company's Maracás Menchen Project, located in Bahia, Brazil, being the company's sole material project for the purposes of NI 43-101. The Maracás Menchen Project consists of the operating Maracás Menchen Mine (Campbell Pit) and includes a number of other deposits being explored throughout the project area. The Maracás Menchen Mine is the company's principal operating asset and has accounted for substantially all of its revenues.
As one of the world's largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors.
The company is in the process of developing and increasing additional revenue streams from the deposit, including increasing its ilmenite concentrate sales and exploring the potential of TiO2 pigment production in the future. In July 2023, the company completed the construction of its Ilmenite Plant and is focused on the ramp-up of its ilmenite concentrate production. In 2024, ilmenite concentrate production was 44,863 tonnes.
The company also has a portfolio of secondary projects consisting of the Campo Alegre de Lourdes project, an iron vanadium property in Bahia, Brazil, the Northern Dancer Project, a tungsten and molybdenum property in Yukon, Canada, and Currais Novos, a tungsten project in Rio Grande do Norte, Brazil.
The company's vanadium flow battery can support improved reliability and grid stability in long-duration applications. Uses of the company's vanadium flow battery technology include, but are not limited to, renewable integration, grid optimization, and microgrid enablement. LCE (Largo Clean Energy Corporation) entered into an agreement to supply its first vanadium flow battery to Enel Green Power España (EGPE), and final delivery remains a priority focus. LCE completed phase 1 hot commissioning of the vanadium flow battery system in the fourth quarter of 2023, and phase 2 hot commissioning is expected to be completed in the third quarter of 2024.
The Maracás Menchen Project is the company's sole material project for the purposes of NI 43-101. The Maracás Menchen Project consists of the operating Maracás Menchen Mine (Campbell Pit) and includes a number of other deposits being explored throughout the project area. The Maracás Menchen Mine is the company's principal operating asset and has accounted for substantially all of its revenues since commencing operations in 2014.
The Maracás Menchen Project produces V2O5 equivalent and ilmenite products from the Campbell Pit and effective as of January 30, 2024, had an estimated mine life of 31 years. Based on the current mine plan and the successful development of the Novo Amparo Norte (NAN), São Jose (SJO), Novo Amparo (NAO), and Gulçari A Norte (GAN) deposits, mining is planned to begin in 2032 at the conclusion of mining at the Campbell Pit.
Energy Storage Business
The company's energy storage business exists through its wholly-owned subsidiary, LCE, based in Wilmington, Massachusetts. LCE's business focuses on the manufacturing, sale, installation, and operation and maintenance of Largo's vanadium flow battery technology.
LCE's vanadium flow battery technology can allow for the storage of energy in chemical form as a vanadium electrolyte that can be converted into electric energy when needed. The company's vanadium flow battery uses patented technology and vanadium electrolyte processing and purification methods to provide support integrated renewable energy storage systems comprises power conditioning, system control and thermal management subsystems.
The company's vanadium flow battery uses patented technology and vanadium electrolyte processing and purification methods to provide support integrated renewable energy storage systems comprises power conditioning, system control and thermal management subsystems.
Vanadium flow batteries can be preferred for use over non-vanadium-based LDES applications in densely populated and risk sensitive areas as the electrolyte solution used in these systems is non-volatile, as it is neither flammable nor explosive as a result of its high-water content. Vanadium flow batteries also have a comparatively long- life cycle due to the non-degrading properties of vanadium. The applications of the vanadium flow battery include, but are not limited to:
Renewable Integration: Enabling the shift of renewable generated electricity to align with consumer demand by storing and delivering clean energy to consumers or businesses when the renewables are otherwise not producing power.
Utilities/Grid Optimization: Storing energy when electricity lines, substations, and other equipment have excess bandwidth and then discharge to handle power quality and ancillary services, which allows for delaying or avoiding upgrades of T&D assets.
Microgrids: Providing microgrids and island energy systems with a reliable source of clean energy, potentially enabling a full transition away from conventional generation with fossil fuels. vanadium flow batteries also provide a source of power for microgrids when access to neighboring grids is unavailable.
Commercial and Industrial Energy Independence: Enabling a transition away from conventional fossil fuels utilizing long-duration renewable energy storage integration. Vanadium flow batteries can serve as excellent surrogates for balancing and reserves of PV and wind integration for commercial and industrial applications.
EV Charging Integration: Reducing grid demands through ultra-fast 350kW charging. The inherent non-flammability of vanadium flow batteries allows for installation near occupied structures like vehicle service stations, office parks, or parking garages.
The company focuses on exploring and evaluating potential strategic alternatives in the power generation markets globally.
Sales to Customers
On July 20, 2021, LCE entered into its first battery sales contract with EGPE to deliver a 5 hour 6.1 MWh vanadium flow battery system for a project in Spain.
Production and Services
LCE has a manufacturing and test facility in Wilmington, MA, with a potential capacity of 1.4GWh per year. Any battery stacks produced at the LCE facility would be transported to a project site, with other components being sourced from regional/local suppliers.
Components
LCE's products are reliant on the availability and cost of a variety of components. LCE's access to Largo's high-quality vanadium is a competitive advantage given the small size of the global vanadium market.
Other key components are sourced from external providers based on quality, availability and price. Such components include, but are not limited to, sulphuric acid, transformers, reclosers, inverters, and electrolyte tanks. Where possible, LCE plans to enter into long term agreements to secure predictable supplies of key inputs.
Intangible Properties
LCE holds issued and pending patents and licenses for the technology underlying its products in key jurisdictions, such as the United States, Europe, Japan, Russia, China, and Japan, which are kept in good standing. The majority of such patents are valid for 20 years from the date of filing.
Marketing and Distribution
Vanadium Sales
The company is responsible for the marketing and distribution of all vanadium production, including VPURE Flake and Powder, VPURE+ Flake, and Powder.
Ilmenite Sales
Ilmenite pricing is very dependant on its quality and recognition in the market. Publications, such as FerroAlloysNet offer more than 15 prices for this commodity in China according to TiO2 content and origin. During its ramp-up phase, Largo production and commercial teams are working closely with end-users to maximize the value of its production.
In January 2024, the company delivered its first commercial sale of ilmenite. The company’s commercial team, operating under Largo Ireland, Largo USA and LVMSA, have successfully built out the company's global sales capacity for all vanadium products having sold 9,600 tonnes (inclusive of 416 tonnes of purchased material) of V2O5 equivalent in 2024.
The vanadium sales cycle commences in the fourth quarter of the year coincident with the main industry conferences in Europe and the United States. The company intends to commit the majority of its anticipated annual vanadium production to annual sales contracts with remaining vanadium production being committed to spot sales. The company has commitments for close to 80% of its 2024 planned vanadium production.
Vanadium Flow Battery
Demand for LDES is fast-growing as governments and large organizations push for net zero goals. While there are approximately 800 MWh across almost 200 vanadium flow batteries installed globally, according to Vanitec, long duration energy storage (LDES) has the potential to be scaled up to 85-140 TWh by 2040 if 10% of all electricity generated would need to be stored in long duration energy at some point. (McKinsey & Company, 2021).
Principal markets of the Storion JV are expected to be North America and Europe in the near to medium term. LDES systems are being solicited by utility companies and developers in both regions as they seek to incorporate higher percentages of renewable energy assets onto the electricity transmission systems.
Foreign Operations
The company's operating facilities are located in Brazil and the United States and its sales and trading functions are located in Ireland, Switzerland, and the United States.
Material Project - Maracás Menchen Mine
The Maracás Menchen Mine is a high grade, open pit vanadium mine located in the state of Bahia, Brazil that began producing V2O5 flake in the third quarter of 2014 and started to produce ilmenite concentrate in the second quarter of 2023. The Maracás Menchen Mine produces a vanadium/titanium ore from an open pit called Campbell Pit. The Campbell Pit produces V2O5 rich ore which is sent to an on-site processing plant which produced 9,264 tonnes of V2O5 and 44,863 tonnes of ilmenite concentrate in 2024. Technical work has elevated GAN, SJO, NAO and NAN deposits to reserve level and they have been included into the life of mine plan that gives the overall project an anticipated life to 2054. The GAN, SJO, NAO and NAN deposits will also be open pit deposits mined for both vanadium and titanium once brought onstream in 2032 when the Campbell Pit is depleted. The ilmenite concentration plant (the ‘Ilmenite Plant’) is part of the first phase, and the subsequent phases includes the potential building of a TiO2 pigment plant (the ‘Pigment Plant’) and the expansion of the ilmenite plant.
The Maracás Menchen Project is located within the greater municipality of Maracás in the eastern Bahia State, Brazil, and lies approximately 250 km southwest of the city of Salvador, the capital of Bahia. Access to the Maracás Menchen Project is via paved secondary road from the main coastal highway to the town of Maracás (350 km) and then a further 50 km via secondary highway and gravel road to the mine site. Access to water, the electrical power grid and railroad is within reasonable distance, and a trained workforce and local unskilled labour is available within the State of Bahia, the country of Brazil and the town of Maracás.
The property consists of eighteen concessions totalling 17,690.5 hectares, and all permits are owned 100% by LVMSA, which is controlled 99.94% directly and indirectly by Largo. Of this total, LVMSA controls two mining permits of 1,000 hectares each, and one exploration permit (977.20 hectares). All concessions are in good standing and there are no underlying royalty payments to any private entities. Companhia Baiana de Pesquisa Mineral (‘CBPM’), an entity owned by the Bahia State Geological Survey, owns the underlying minerals rights to most of the project area, with the exception of NAN which is owned by Largo Vanádio de Maracás S.A. (LVMSA).
In 2024, the company completed 44 diamond drill holes (8,278 metres) at the Maracás Menchen Project and 39 Reverse Circulation (RC) drill holes (2,611 metres) of in-fill drill program. From the total of diamond holes 27 holes (6,252 metres) were to attendance legal exigences in 3 claims, 17 holes (2,026 metres) at the Campbell and GAS connection.
History
The company was incorporated in 1988 in the province of British Columbia. The company was formerly known as Largo Resources Ltd. and changed its name to Largo Inc. in 2021.
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