DealsJul 1, 2026, 06:07 AM
Largo Awarded 5-Year US DoD Contract for Vanadium Supply up to $125M
AI Summary
Largo Inc. announced that its subsidiary, Largo Resources USA Inc., has been awarded a five-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract by the U.S. Defense Logistics Agency Strategic Materials. The contract is for the supply of up to 2,876 metric tonnes of high-purity vanadium pentoxide, with a maximum value of US$125 million. This agreement positions Largo as a key supplier to the U.S. Department of Defense, securing a premium fixed-price for its product and strengthening critical mineral supply chains.
Key Highlights
- Awarded a five-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract by the U.S. Defense Logistics Agency Strategic Materials.
- Contract to supply up to 2,876 metric tonnes of high-purity vanadium pentoxide (V₂O₅).
- Maximum contract value of up to US$125 million.
- Fixed-price per pound V₂O₅ at a premium above current benchmark prices, escalating 10% annually after 2026.
- Establishes Largo as a trusted supplier within the U.S. defense industrial base.
- Largo produced 9,150 tonnes of V₂O₅ equivalent in 2025.
- Guided production for 2026 is 10,500 to 12,000 tonnes of V₂O₅ equivalent.
- Q1 2026 production was 2,616 tonnes of V₂O₅ equivalent.
Price Impact
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