Vanadium Market

Fundamentals
Terry Perles
US Vanadium, LLC
TTP Squared, Inc.

2/14/23 TTP Squared, Inc. 1

 V Consumption and Production
140,000 $35.00

2022, 118,319
120,000 $30.00

100,000 $25.00

V2O5 Price (US$/lb. V2O5)

Metric Tons V per Year

2022, 115,220

80,000 $20.00

60,000 $15.00

40,000 $10.00

20,000 $5.00

source: TTP Squared, Inc., Metal Bulletin

0 $-

2015

2021
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2016

2017

2018

2019

2020

2022
Production Consumption V2O5 Price
2/14/23 TTP Squared, Inc. 2
 Annual Vanadium Inventory Change
Price inflated to Nov. 2022 US$
10,000 $35.00

8,000
$30.00
6,000

4,000 $25.00

V2O5 Price (US$/lb V2O5)

Metric Tons V per Year

2,000
$20.00
0
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
-2,000
$15.00
-4,000

-6,000 $10.00

-8,000
$5.00
-10,000
Soure: TTP Squared Inc., Metal Bulletin
-12,000 $-
2/14/23 TTP Squared, Inc. 3
 Sources of New Demand 2002-2030
140,000
Not including energy storage applications
120,000

100,000

80,000
MTV

60,000

40,000

20,000

-
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018
2019

2020
2021

2022

2023e

2024e

2025e

2026e

2027e

2028e

2029e

2030e
Change in Steel Production Change in Specific V Consumption in Steel
2/14/23 TTP Squared, Inc. 4
 Annual Installed Utility and Commercial and Industrial
VRFB Deployment Energy Capacity by Region, All
Application Segments, World Markets: 2022-2031

35,000 North America Western Europe Eastern Europe

Asia Pacific Latin America Middle East

30,000
Africa

25,000

20,000
(MWh)

15,000

10,000

5,000

-
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Source: Guidehouse Insights, 2Q2022

2/14/23 TTP Squared, Inc. 5
 Vanadium Demand in VRFB Systems
180,000
Source: Guidehouse Insights, 2Q2022 164,014
160,000

140,000 135,418

120,000 115,791
Metric Tons Vanadium

97,936
100,000

80,000 72,710

60,000
50,558

40,000 36,299
25,491
20,000 13,403
8,213

-
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
2/14/23 TTP Squared, Inc. 6
 VRFB vs Lithium-ion Economics
Head to Head Comparison: Lifetime Costs of a 3 MW, 8 Hour Duration System

Lithium-ion Weaknesses Cost Projections Li ion VRFB

($ per KWHr)

▪ Power and energy coupled, DC System (cells, $199 $91

module, racking, BMS)
creating a linear cost curve
Vanadium $0 $210

CAPEX
▪ Experience energy loss with Containerization and $31 $0
age and every cycle Fire Suppression
Initial Overbuild $23 $0
▪ Primarily focused on
automotive TOTAL $253 $301
i.e. R&D $ toward power not cycles
Electricity $138 $177
▪ Heat causes fires and in
extreme cases explosions O&M $51 $27
Replacement and $106

OPEX (NPV)
$0
ongoing augmentation
Liability insurance $44 $5
End of life disposal $3 ($105)
(recovery)
TOTAL $340 $104

Total CAPEX + OPEX $593 $405

2/14/23 TTP Squared, Inc. Source: TTP Squared, inc. 7
 Vanadium Production/Consumption Forecast
350,000
312,000 MTV
300,000

250,000
174,633
200,000
MTV

150,000

100,000

50,000

2030e
2007

2009
2001
2002
2003
2004
2005
2006

2008

2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023e
2024e
2025e
2026e
2027e
2028e
2029e
China Europe North America Japan CIS India Other Guidehouse Energy Storage Production Current Sources

2/14/23 TTP Squared, Inc. 8

 2022 V2O5 Cash Cost Curve
$18.00
Steel Slag
$16.00 Primary Ore
Secondary
U Ores
$14.00 Stone Coal

$12.00
Cash Cost US$/lb. V2O5

$10.00

$8.00

$6.00

$4.00

$2.00

$-
- 20,000 40,000 60,000 80,000 100,000 120,000
Production Capacity (MTV)
Source: TTP Squared, inc.
2/14/23 TTP Squared, Inc. 9
 Metal Bulletin V2O5 Monthly Midpoint Average Nominal Price
Jan. 2004 - Jan. 2023
$30.00
May-05, $26.25
US$/Pound V2O5 Nov 18, $28.42
Mean $8.06
Median $6.75
$25.00
High $28.42 (Nov 2018)
Low $2.78 (Jan. 2016)

$20.00
Jun-08, $17.66
US$/Pound V2O5

$15.00 Jan-2023, $9.87

$10.00

$5.00

Jan-16, $2.78 Dec 20, $5.29

Source: Metals Bulletin publication
$-

Jan-…
Jul-15
Jan-04
Jul-04

Jul-05

Jul-06

July-07

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12
Jan-13
Jul-13

Jul-14

Jul-16

Jul-17

Jul 18

Jul 19

Jul 20

Jul 21

July 22
Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-12

Jan-14

Jan-15

Jan-16

Jan-17

Jan 18

Jan 19

Jan 20

Jan 21

Jan 22
Jan.-11

11/12/2022 TTP Squared, Inc.

 V2O5 Nominal Price Distribution Chart
Jan. 2004 - Nov. 2022

60
US$/Pound V2O5
Mean $8.06
50 Median $6.75
High $28.42 (Nov. 2018)
Low $2.38 (Dec. 2015)
Number of Occurances

40

30

20

10
Source: Metals Bulletin publication, TTP Squared, Inc.

11/12/2022 TTP Squared, Inc.

 Metal Bulletin V2O5 Monthly Midpoint Average Real Price
Jan. 2004 - Nov. 2022
Inflated to Nov. 2022 US$
$60.00
May-05, $50.83 US$/lb. V2O5
Mean $12.46
Median $10.58
$50.00
High $50.83 (May 2005)
Low $4.55 (Jan. 2016)
Nov 18, $38.71
$40.00
US$/Pound V2O5

$30.00 Jun-08, $24.02

$20.00
Jan-2023, $9.87

$10.00

Source: Metals Bulletin publication Jan-16, $4.55

$-
Jul-08
Jul-04

Jul-05

Jul-06
Jan-07
July-07

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

Jul-17

Jul 18

Jul 19

Jul 20

Jul 21

July 22
Jan-04

Jan-05

Jan-06

Jan-08

Jan-09

Jan-10

Jan-12

Jan-13

Jan-14

Jan-15

Jan-16

Jan-17

Jan 18

Jan 19

Jan 20

Jan 21

Jan 22

Jan-2023
Jan.-11

11/12/2022 TTP Squared, Inc.

 V2O5 Real Price Distribution Chart
Jan. 2004 - Nov. 2022
Inflated to Nov. 2022 US$
35

US$/Pound V2O5
30 Mean $12.46
Median $10.58
High $50.83 (May 2005)
25 Low $4.55 (Jan. 2016)
Number of Occurances

20

15

10

5 Source: Metals Bulletin publication, TTP Squared, Inc.

11/12/2022 TTP Squared, Inc.

 Annual Inflated V2O5 Price
Inflated to Nov. 2022 US$

$35.00
Average inflated Annual Price: Source: Metal Bulletin Publication
$31.28 2004-2021 US$11.62/lb. V2O5
$30.00

$25.00 $25.05
US$/lb. V2O5

$20.00
$19.41

$15.00 $13.41
$10.29 $13.01
$12.37 $11.81
$8.67 $8.97
$10.00 $9.02 $10.27
$7.85
$9.93
$7.89 $5.72 $8.70
$5.00 $5.28 $8.03
$5.54

$-
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022
2/14/23 TTP Squared, Inc. 14
Summary
• Vanadium consumption will grow in the coming years as a result of
the use of vanadium in energy storage applications including
vanadium redox flow battery systems. There are wide variances in
the projected rate of growth of vanadium in energy storage
applications in the next 10 years
• Consumption of vanadium in the steel industry will continue to see
moderate growth as global specific vanadium consumption rates
continue to increase as a result of the economic benefit of replacing
lower strength steels with high strength low alloy steels in load
bearing applications

2/14/23 TTP Squared, Inc. 15

Summary
• Assuming even modest growth in vanadium consumption in energy
storage applications, the industry will be challenged to meet surging
demand in the coming decade.
• Long term inflated V2O5 historical prices are in the range of US$9.00-
$12.00/lb. V2O5.
• The cash cost of the last incremental units required to satiate demand
in 2022 is above US$12.00/lb. V2O5.

2/14/23 TTP Squared, Inc. 16

U.S. Vanadium LLC produces and sells a range of
specialty vanadium chemicals, including the
highest-purity Vanadium Pentoxide (“V205”) in
the world.
Cross Current Solutions SX/MVO
Decantation Building building

Feed Yard
 Feed Stock Sources
FEEDSTOCK SOURCE PROPERTIES V2O5 H2O

Flexicoke/Coke Produced at an oil refinery as part of the refining Fine light black powder, very slick when wet, dusting 6-14% 30-40%
process. Residual after the production of syngas. an issue and must be controlled
Fly Ash Typically produced at a power plant as a result of Typically a fine, light powder, black in color but 2-30% 1-65%
burning oil to make power. Usually collected dry ranges from brown to grey. Can be very wet if
from the exhaust gases, but can be stored wet in removed from collection ponds
ponds
Petcoke Cinder Typically produced at a gasification unit to Similar to fly ash but not light and powdery. Heavy 5-30% 1-10%
produce a syngas then cinder is collected at the almost grainy. Usually black in color.
bottom of the gasifier
Boiler Slag / Produced in boilers when burning oil as a result of Looks like rocks. Very hard with large chucks. If 30-60% 2-5%
Bottom Ash metallic material fusing after exposure to high crushed, the exposed surface will be shiny due to
heat for an extend period of time. high metals content
Steel Slag Byproduct from the production of pig iron in the Brown solid 10-24% 3-5%
steel production process when processing
vanadium bearing iron ore.
Slimes Typically produced at a power plant as a result of Typically a wet mixture of very fine ash and water. 18-30% 20-40%
burning oil to produce power. In some cases it is a mix of bottom ash and slag
Maleic Catalyst Catalyst used in the production of maleic Light blue to white pellets or dust. High in 40-60% 1-5%
anhydride phosphorous
Sulfuric Acid Catalyst used in the production of sulfuric acid Yellow to white pellets. High in silica. Cannot be 3-6% 5-10%
Catalyst feed in residue or flexicoke circuit.
Oxide Specifications
Halides and Solutions Building
 Electrolyte Production

Electrolyte Storage
 Thanks!
Terry Perles
Terry.perles@usvanadium.com
terry@ttpsquared.com
+1 412 897 3066

2/14/23 TTP Squared, Inc. 23