Largo Increases V2O5 Production Outlook for 2025 Despite Early Challenges

Largo

Vanadium producer anticipates higher production in 2025 but warns of early-year disruptions.

Largo, a leading vanadium producer, has raised its production outlook for vanadium pentoxide (V2O5) in 2025. The company forecasts producing between 9,500 and 11,500 metric tonnes (t) of V2O5, with production heavily weighted toward the second half of the year. However, Largo has warned that its early-year output will face disruptions due to heavy rainfall and a delayed ramp-up after scheduled maintenance during the latest quarter.

Challenges in Early 2025 Production

Largo’s production plans for the first half of 2025 are expected to face several challenges. The company has highlighted that lower ore grades and mine sequencing adjustments will place additional pressure on production. As a result, early-year output may fall below expectations. Despite these short-term setbacks, the company remains confident in achieving a higher overall output for the year.

2024 Performance and 2025 Sales Forecast

In 2024, Largo produced 9,264t of V2O5 at its Maracás Menchen mine in Brazil, slightly under its annual guidance and down 4.3% from 2023 levels. Despite the production dip, full-year sales volumes of 9,600t were within expectations, although they fell by 7.7% compared to the previous year. For 2025, the company projects that sales will fall within the range of 7,500-9,500t, largely due to the early disruptions.

Fourth-Quarter Performance and Ilmenite Production

The fourth quarter of 2024 saw a 36% drop in vanadium pentoxide output, falling to 1,775t due to planned maintenance work, including kiln and refractory maintenance. However, sales in the same period saw a 16% increase, reaching 3,033t, with a portion of these sales coming from purchased units and material acquired through an inventory supply agreement.

Ore grades also dropped in the fourth quarter, from 0.82% in the prior year to 0.49%. Recovery rates also saw a decline, falling from 79.4% to 77.9%. Alongside its V2O5 operations, Largo has adjusted its ilmenite production forecast for 2025, targeting between 25,000 and 35,000t, down from 44,863t in 2024. The company expects to sell between 20,000 and 30,000t of ilmenite, compared to 42,916t sold last year.

Conclusion

Despite a challenging start to 2025, Largo remains optimistic about its long-term production targets. The company is positioning itself to ramp up production in the second half of the year, aiming for a stronger finish. With vanadium ore grades and recovery rates under pressure, Largo will need to address early setbacks to meet its 2025 sales and production goals.