The company aims to achieve early cash flow to support the development and financing of the Steelpoortdrift project.

Australian Vanadium Resources signed an agreement with China Precious Asia (CPAL) to supply high-vanadium magnetite ore from its Steelpoortdrift project in South Africa. Vanadium Resources will supply 100ktpm on average, with the company holding an option to increase or decrease the amount sold by 25%. According to local media, the agreement will commence after 20 November 2025.

Vanadium Resources’ Executive chair Jurie Wessels said the companies are examining the potential supply of vanadium-rich magnetite ore to China. “Through our ongoing strategic equity and offtake process, it became increasingly apparent that there is a compelling opportunity to potentially transition the company toward near-term production, even at this low point in the vanadium market cycle,” he noted.

CPAL is targeting the Asian steel markets and, in recent years, has focused on vanadium-rich magnetite ore to align with China’s desire to supplement domestic supply with securing vanadium feedstock in the face of rising demand.

In Project Blue’s view, China is expected to remain the main driver of vanadium demand growth in the coming years, largely driven by consumption in the vanadium redox flow battery (VFB) sector. South Africa is already a key supplier of vanadium to the global market, providing up to 7% of global supply.