Vanadium’s critical applications
Vanadium is a silvery-grey metal found in low concentrations across some 65 minerals (such as
magnetite, vanadinite and carnotite). Today, it is primarily produced as a by-product of steel
manufacturing (from steel slag), heavy hydrocarbon production or uranium mining.
Vanadium key uses:
- Steel manufacturing: Vanadium improves steel’s strength, ductility, weldability and
resistance to heat and corrosion.
- Vanadium Flow Batteries (VFB): This is vanadium’s second and growing use due to
expanding market for renewable energy storage.
- Defense industry: Vanadium is essential for producing special alloys used in missiles,
armored vehicles, tanks and artillery systems.
VFB advantages over lithium-ion batteries:
- More environmentally friendly because more easily recyclable, durable, and because
their production emits less CO 2 .
- More easily constructed, lowering manufacturing costs.
- Safer because non-flammable.
- Better for long-duration energy storage.
VFB disadvantages:
- Require more space because of their low energy density.
- Better suited for large-scale solar and wind energy storage facilities than portable
electric devices and electric vehicles.
China’s dominant position in vanadium supply chain and Africa’s role
China is the world’s top producer of vanadium, accounting for approximately 70% of global
output in 2024. Other leading producing countries include Russia (21%) and South Africa (8%).
China is also the world’s top vanadium consumer, despite softening demand for steel due to the
slowdown in its construction sector.
In sub-Saharan Africa, South Africa is the top vanadium producer, accounting for 8% of global
supply in 2024. Other African countries with significant vanadium resources include Namibia,
Zambia, Zimbabwe, Botswana and Madagascar. Several of these countries produced vanadium
in the past in now closed zinc and lead mines, such as Namibia’s Abenab mine and Zambia’s
Kabwe mine.
Market challenges impact African projects
South Africa-based Bushveld Minerals, one of the world’s top vanadium producers, entered
liquidation and was delisted from the London Stock Exchange in April 2025 due to financial
troubles incurred by low vanadium prices and the firm’s inability to raise funds. Bushveld
Minerals’ vast vanadium assets in South Africa included:
- Bushveld Vametco project: an open-pit mine and a processing plant in North West
Province. The Vametco Plant was shut in December 2024 for extended maintenance
works to improve its efficiency and profitability.
- Mokopane vanadium mine and Vanchem vanadium processing plant: Bushveld
Minerals sold both in 2024 to London-based Southern Point Resources (SPR) Fund to
raise funds. SPR is a financial institution and investment fund that focuses on mineral
mining projects in southern Africa, particularly materials used for energy transition.
- Bushveld Electrolyte Company (Belco) Bushveld Minerals, Belco’s majority owner
(55%), is also selling this asset.
Unfavorable market conditions also pushed Swiss commodity trader Glencore, which owns
Rhovan Vanadium Mine and a processing plant in South Africa, to cut production of vanadium
pentoxide by 6% in 2024, compared to the previous year.
For the same reason, Australia-based company Deep Yellow Limited deferred in March 2025
the final investment decision for the Tumas uranium-vanadium project and delayed the
construction of the processing plant in neighboring Namibia.
Major projects in development
Despite market headwinds, several exploration projects are advancing, primarily led by
Australian companies. While the EU is completely reliant on vanadium imports, European
companies do not appear to be involved in any major vanadium projects in Africa. Examples of
companies developing brownfield and greenfield projects include:
- Australia-based Golden Deeps Limited launched a scoping and pre-feasibility study in
2022 for the Abenab underground and Nosib open-pit resources in Namibia’s Otavi
Mountain Land to produce vanadium, copper, lead, zinc and silver. Abenab was one of
the world’s largest vanadium mines (primarily producing lead and zinc) in the first half of
the 20 th century (1921-1947). Exploration work returned exceptionally positive results,
demonstrating high-grade vanadium and other mineral resources. In March 2025,
Golden Deeps acquired up to 80% of four neighboring leases, expanding its holdings to
440 square kilometers and broadening exploration activities to include other critical raw
materials such as gallium, antimony and germanium. Golden Deeps also signed a Joint
Venture Agreement with Hong Kong-based metals trading company Generous Metals
Company Limited (GMC) in April 2019 to produce high-grade vanadium concentrate in
Namibia. The agreement covers above-ground stockpile and tailings at the Abenab
project, which will be shipped to China for further processing and sale.
- Australian firm Vanadium Resources (VR8) is expected to make the final investment
decision for its Steelpoortdrift project in Bushveld Complex in South Africa’s Limpopo
Province in 2025Q3, with vanadium production starting in 2028. VR8 signed a
Memorandum of Understanding with China Energy International Group (CEIG) in
September 2024 to provide financing, engineering, procurement and construction
support for the project. The company is also in talks with a European banking institution
and other partners for additional project support.
- Canada-based Next Source Materials is in advanced exploration stage of its Green
Giant Vanadium Project in Madagascar, which is one of the world’s largest known
vanadium deposits.
10+year outlook
Like lithium, current market challenges for vanadium are unlikely to persist long-term. Growing
demand for long-duration energy storage and China’s implementation of stricter steel industry
(rebar) standards in September 2024 are expected to drive vanadium demand in the coming
years, potentially leading to supply shortage as early as this year. Improved prices are likely to
spur renewed interest in vanadium resources in sub-Saharan Africa and help accelerate
projects that have been delayed due to market downturns.
In addition to the projects mentioned above, market recovery is likely to help UK-based Shuka
Minerals finalize the purchase of Zambia’s Kabwe mine in June 2025, which remains
conditional upon receiving final regulatory approval and securing the required funding.