Mineral Monday: What you need to know about vanadium and which ASX shares are cashing in on it

China currently produces almost 60% of the global vanadium supply.

| More on:
A male geologist wearing a white hardhat and orange high vis vest talks on a walkie-talkie while staring at a rock showing mineral deposits

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Vanadium is listed as a critical mineral by the Australian government
  • The malleable metal is used in steel, nuclear plants and batteries
  • The 3 ASX shares involved with vanadium we look at today have thrashed the benchmark returns over the past 12 months

You'll find no shortage of ASX shares operating in the resource space.

That's mostly because Australia has been blessed with an abundance of natural resources.

When it comes to critical minerals like vanadium, however, the number of ASX shares exploring for and producing the element is much narrower.

We'll look at three of those below.

But first…

What is vanadium?

If you recall your periodic table from your school days, vanadium is atomic number 23.

It's a ductile metal that's resistant to corrosion from alkalis, acids and salt water.

Vanadium is primarily used to produce stronger, more heat resistant steel. You'll also find it in nuclear reactors and modern batteries.

Currently China produces almost 60% of the global vanadium supply.

And with the Western world working to secure supplies of crucial materials outside of China, vanadium has been listed as a critical mineral by the Australian government.

So, which ASX shares are digging up vanadium?

The ASX shares cashing in on vanadium

First off, we have the aptly named Australian Vanadium Ltd (ASX: AVL).

The company's main focus is its Australian Vanadium Project, located in Western Australia, which has a globally significant vanadium resource.

AVL has seen some big share price swings over the past 12 months on reports of various successes and setbacks. All up, investors have rewarded the company, with shares up 120% since this time last year.

The small-cap ASX share has a market capitalisation of $157 million.

Who else is focused on vanadium?

Another ASX share involved with vanadium is Neometals Ltd (ASX: NMT).

Among its projects, Neometals is the 100% owner of the Barrambie vanadium-titanium project. The company is also working on vanadium recovery in Europe.

Following a 158% share price surge over the past 12 months, Neometals has a current market cap of $705 million.

Looking into the larger companies, there's also Syrah Resources Ltd (ASX: SYR).

While not the element is its primary focus, Syrah reported its Balama graphite project in Mozambique "contains a significant vanadium by-product resource which presents a potential value-accretive opportunity".

The company added:

Vanadium, a by-product which is liberated during the graphite production process, could potentially be refined into a saleable product via processing of material currently reporting to tailings at Balama.

The Syrah resources share price is up 79% since this time last year.

That gives the ASX share a market cap of $1.2 billion.

You can find also find out which ASX shares are cashing in on lithium and cobalt in more of our 'Mineral Monday' series.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Copal miner standing in front of coal.
Resources Shares

Should you buy Whitehaven shares during this sell-off?

Here's what the experts say.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Iron ore price 'may fall below $US80': Will ASX 200 mining giants still make decent profits?

Another broker jumps on the US$80 tonne iron ore train.

Read more »

Miner looking at a tablet.
Resources Shares

Is Fortescue stock's 8% dividend yield worth the risk?

Is the payout large enough to compensate for the lurking danger?

Read more »

Two miners dressed in hard hats and high vis gear standing at an outdoor mining site discussing a mineral find with one holding a rock and the other looking at a tablet.
Resources Shares

Down 64% this year, what's next for Sayona Mining shares?

Is there light at the end of the tunnel?

Read more »

Three coal miners smiling while underground
Resources Shares

Down 20% in a month, is this stock 'one of the highest quality mining companies on the ASX'?

Long-term views are bullish.

Read more »

Miner looking at a tablet.
Resources Shares

Up 11% in a week, what's next for Core Lithium shares?

Recent developments give some insights.

Read more »

a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.
Resources Shares

Warning! Time is running out to bag the next South32 dividend

You'd better hurry if you want this miner's latest payout.

Read more »

asx iron ore share price crash represented by meteor speeding through space
Resources Shares

CBA predicts further 13% drop in iron ore price

A further slump could pinch the sector hard.

Read more »