Vanadium Resources (VR8) has recently signed an MOU with China’s Panjin Hexiang New Materials Technology for the supply of vanadium from its operations in South Africa. VR8 is set to provide 4,000tpa of V2O5 flake, representing 37% of its planned annual production capacity, to Panjin Hexiang New Materials Technology.
This non-binding agreement is valid for an initial five years, with an option for a five-year extension. The MOU paves the way for further discussions on pricing, product quality, and other offtake parameters.
Panjin Hexiang New Materials Technology, established in 2018, specializes in the production and sale of vanadium-nitrogen alloys, non-ferrous metals, and chemical products. With an annual production capacity of 3,200t, the company is among China’s top manufacturers of vanadium-nitrogen alloy, an essential additive in the production of micro-alloyed steel.
VR8 CEO John Ciganek expressed excitement about the strategic partnership, stating that the collaboration with Panjin Hexiang New Materials Technology reflects VR8’s progress in the project debt and equity markets. He emphasized that VR8 will continue to explore offtakes in other regions or into the vanadium redox flow battery market.
Ciganek also highlighted the strategic value of VR8’s Steelpoortdrift and Tweefontein Vanadium Project, noting its size, low capital expenditure, low operating costs, strategic location, access to infrastructure, and advanced development stage. This partnership signifies a significant step forward for both companies in the vanadium market.
