Two Important Letters
'V' and 'W' ....
Pop quiz!! On the Periodic Table, what element is denoted by the letter ‘V’ and what element is denoted by the letter ‘W’ ??
If you don’t immediately know the answer - don’t feel bad. These two elements are not commonly talked about in the financial media.
If you answered Vanadium and Tungsten - you would be correct.
What are these elements and what are they used for?
Short answer - Vanadium is used as an alloy element in the steel industry. Vanadium is also a key component in the Vanadium Redox battery which is used to store energy generated by wind turbines or solar panels.
Short answer again - Tungsten is used in the defense and aerospace industry. It is used in semiconductors, and in the battery design of electric vehicles.
I have found a Canadian-based Company that is mining Vanadium in South America and that is sitting on a Tungsten project in Canada. Moreover, the Company is moving towards the manufacture of Vanadium storage batteries through its 1/3 ownership in a storage battery manufacturer.
Market analysts at global consultancy Roskill stress that Vanadium’s supply concentration in China, South Africa, and Russia (all countries that could be subject to tariffs, sanctions, and poor relations with the E.U. and North America) coupled with rising demand from the steel industry plus the disruptive demand from grid-scale Vanadium storage batteries, create a market prone to sharp volatility where relatively small imbalances can trigger outsized price spikes.
Excellent!! - price volatility is what makes for an excellent stock to trade in and out of. Over the next several years, it is expected that 17% of global Vanadium will be taken up by the grid-scale storage battery industry.
As far as Tungsten is concerned, the global tungsten market is facing a severe structural deficit. China is the main player in the Tungsten market and the Chinese are acutely aware that the demand for Tungsten is on the rise. China is not going to give the stuff away. This is why the U.S. has added Tungsten to its list of critical minerals. I figure - Companies sitting on undeveloped Tungsten projects will soon be facing offers from large global miners to buy these projects.
We could be headed to a ‘perfect storm’ situation for both Vanadium and Tungsten.
Let’s take a closer look at this Canadian-based company that I have found through the lens of cycles and quantum lines.
