Largo Secures $125M Contract for Vanadium Supply to U.S. Defense
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2026
0mins
Source: seekingalpha
- Contract Award: Largo (LGO) has been awarded a contract by the U.S. Defense Logistics Agency to supply high-purity vanadium pentoxide worth up to $125 million, establishing the company as an approved supplier and enhancing its position in critical mineral supply chains.
- Supply Chain Strategy: This contract is part of the Department of Defense's efforts to strengthen critical mineral supply chains, ensuring long-term access to strategic materials essential for defense readiness, highlighting Largo's significance in national security.
- Production Capacity: Largo is well-positioned to fulfill delivery orders from its Maracás Menchen mine and chemical complex in Brazil, the world's largest primary vanadium mine, having produced 9,150 tons of vanadium pentoxide equivalent in 2025 and guiding for output of 10,500 to 12,000 tons in 2026.
- Delivery Period: The contract provides for a five-year ordering period with firm-fixed-price delivery orders, ensuring Largo can consistently supply vanadium pentoxide while meeting the stringent purity and quality specifications set by the DLA, further solidifying its market position.
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Analyst Views on LGO
Wall Street analysts forecast LGO stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 0.665
Low
2.90
Averages
2.90
High
2.90
Current: 0.665
Low
2.90
Averages
2.90
High
2.90
About LGO
Largo Inc. is a Canada-based producer and supplier of vanadium and ilmenite products. The Company’s segments include Sales & trading, Mine properties, Corporate, Exploration and evaluation properties (E&E properties), Clean Energy and Largo Physical Vanadium. Its VPURE and VPURE+ products are sourced from one of the vanadium deposits at the Company's Maracas Menchen Mine in Brazil. The Maracas Menchen Mine, located in Bahia State, Brazil, consists of vanadium resources and spans over 48,954 hectares. The VPURE+ Flakes are used in the production of master alloys, where it provides high strength-to-weight ratios for the titanium alloy and aerospace industries. It has also invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Largo Secures $60.1M Defense Order, Boosting Revenue Outlook
- Significant Order Value: Largo announced a $60.1 million firm-fixed-price delivery order from the U.S. Defense Logistics Agency, which is expected to provide long-term revenue visibility through deliveries scheduled until January 2030, indicating strong demand in the defense sector.
- Production Adjustment Plans: Starting July 2026, Largo will adjust its production and commercial programs to support this significant DLA order, which will not only enhance the company's presence in the U.S. market but also optimize its sales mix.
- Price Improvement Expectations: The order is anticipated to improve Largo's average realized vanadium prices, leading to increased sales revenue and further strengthening the company's competitive position, especially without applicable import tariffs.
- Large Contract Scale: This order is part of a larger contract with an aggregate value of up to $125 million, highlighting Largo's significant role in the defense materials supply chain and its potential for future growth.
See More
Largo Secures $125M Contract for Vanadium Supply to U.S. Defense
- Contract Award: Largo (LGO) has been awarded a contract by the U.S. Defense Logistics Agency to supply high-purity vanadium pentoxide worth up to $125 million, establishing the company as an approved supplier and enhancing its position in critical mineral supply chains.
- Supply Chain Strategy: This contract is part of the Department of Defense's efforts to strengthen critical mineral supply chains, ensuring long-term access to strategic materials essential for defense readiness, highlighting Largo's significance in national security.
- Production Capacity: Largo is well-positioned to fulfill delivery orders from its Maracás Menchen mine and chemical complex in Brazil, the world's largest primary vanadium mine, having produced 9,150 tons of vanadium pentoxide equivalent in 2025 and guiding for output of 10,500 to 12,000 tons in 2026.
- Delivery Period: The contract provides for a five-year ordering period with firm-fixed-price delivery orders, ensuring Largo can consistently supply vanadium pentoxide while meeting the stringent purity and quality specifications set by the DLA, further solidifying its market position.
See More
Largo Reports Q1 2026 Financial Results
- Financial Decline: Largo reported a GAAP EPS of -$0.07 and revenue of $27.5 million for Q1 2026, reflecting a 2.6% year-over-year decline, indicating pressure in market competition that could affect future investor confidence.
- Production Capacity Boost: The production of vanadium pentoxide (V2O5) surged by 101.7% year-over-year to 2,616 tonnes in Q1 2026, exceeding the upper end of the company's quarterly guidance, demonstrating significant improvements in production efficiency that may aid revenue recovery.
- Stable Cost Control: Adjusted cash operating costs remained flat at $3.90 per pound sold in Q1 2026 compared to 2025, providing a degree of financial resilience despite overall poor financial performance, which could be crucial for future operations.
- Significant Ore Mining Increase: Total ore mined in Q1 2026 increased by 90.8% to 852,046 tonnes, showcasing enhanced resource acquisition capabilities that may lay the groundwork for future production and revenue growth.
See More
Largo Reports Significant Growth in Q1 2026 Performance
- Production Surge: In Q1 2026, Largo's vanadium pentoxide (V2O5) production reached 2,616 tonnes, a remarkable 101.7% increase year-over-year, indicating significant operational efficiency improvements at the Maracás Menchen Mine, thereby enhancing its competitive position in the global vanadium market.
- Ore Mining Increase: The total ore mined in Q1 2026 was 852,046 tonnes, up 90.8% from 446,614 tonnes in Q1 2025, which not only boosts raw material supply capabilities but also lays the groundwork for future production expansion.
- By-product Production Plans: On April 10, 2026, Largo filed a request with the Brazilian Mining Agency to produce and sell copper, platinum group metals, nickel, and cobalt as by-products within its existing mining operations, which is expected to further diversify revenue streams and enhance overall profitability.
- Leadership Structure Update: The company announced that Luis Rendón now serves as Chief Operating Officer and Luânder Peixoto has been promoted to Group General Counsel, aiming to strengthen the professionalism and execution capabilities of the management team to support the company's long-term strategic objectives.
See More
Largo Resources Q4 Financial Results Analysis
- Financial Decline: Largo Resources reported a GAAP EPS of -$0.22 for Q4 2025, with revenues of $22.27 million, reflecting an 8.2% year-over-year decline, indicating challenges and pressures in the market environment.
- Production and Sales Data: Despite the revenue drop, Largo achieved a V2O5 production of 2,961 tonnes in Q4 2025, a 67% increase from 1,775 tonnes in Q4 2024, demonstrating significant progress in production capacity.
- Increased Ore Mined: The total ore mined reached 665,953 tonnes in Q4 2025, a 40% increase from 476,742 tonnes in Q4 2024, showcasing the company's proactive expansion in resource extraction.
- Future Outlook and Guidance: Largo reiterated its 2026 vanadium production guidance, expecting annual production of 10,500 to 12,000 tonnes and sales of 7,500 to 9,500 tonnes, maintaining confidence in future prospects despite current financial challenges.
See More
Largo Terminates Iron Ore Sale Agreement, Seeks New Buyers
- Sale Agreement Termination: Largo announced the termination of its iron ore calcine sale agreement due to the buyer's failure to make a $2.9 million initial payment on time, although this move is not expected to materially impact the company's financial position, liquidity, or operations.
- Ownership Retained: The company stated that it retains full ownership of the 4.5 million metric tons of iron ore calcine, a valuable byproduct from its vanadium operations at the Maracás Menchen mine in Brazil, and no calcine was delivered under the agreement, ensuring operational continuity.
- Tariff Assessment: Largo is assessing the U.S. Supreme Court's tariff decision that could affect Brazilian-origin vanadium products, as the company previously faced a 50% tariff on direct imports, which has now been overturned by the court ruling.
- Inventory Release Potential: The company has high-purity vanadium units stored in a bonded warehouse in the U.S. that have not yet been imported, and if tariffs are modified, these units could be quickly released and supplied broadly to U.S. customers, thereby improving working capital tied to unsold inventories.
See More
Largo Secures $60.1M Defense Order, Boosting Revenue Outlook
- Significant Order Value: Largo announced a $60.1 million firm-fixed-price delivery order from the U.S. Defense Logistics Agency, which is expected to provide long-term revenue visibility through deliveries scheduled until January 2030, indicating strong demand in the defense sector.
- Production Adjustment Plans: Starting July 2026, Largo will adjust its production and commercial programs to support this significant DLA order, which will not only enhance the company's presence in the U.S. market but also optimize its sales mix.
- Price Improvement Expectations: The order is anticipated to improve Largo's average realized vanadium prices, leading to increased sales revenue and further strengthening the company's competitive position, especially without applicable import tariffs.
- Large Contract Scale: This order is part of a larger contract with an aggregate value of up to $125 million, highlighting Largo's significant role in the defense materials supply chain and its potential for future growth.
See More
Largo Secures $125M Contract for Vanadium Supply to U.S. Defense
- Contract Award: Largo (LGO) has been awarded a contract by the U.S. Defense Logistics Agency to supply high-purity vanadium pentoxide worth up to $125 million, establishing the company as an approved supplier and enhancing its position in critical mineral supply chains.
- Supply Chain Strategy: This contract is part of the Department of Defense's efforts to strengthen critical mineral supply chains, ensuring long-term access to strategic materials essential for defense readiness, highlighting Largo's significance in national security.
- Production Capacity: Largo is well-positioned to fulfill delivery orders from its Maracás Menchen mine and chemical complex in Brazil, the world's largest primary vanadium mine, having produced 9,150 tons of vanadium pentoxide equivalent in 2025 and guiding for output of 10,500 to 12,000 tons in 2026.
- Delivery Period: The contract provides for a five-year ordering period with firm-fixed-price delivery orders, ensuring Largo can consistently supply vanadium pentoxide while meeting the stringent purity and quality specifications set by the DLA, further solidifying its market position.
See More
Largo Reports Q1 2026 Financial Results
- Financial Decline: Largo reported a GAAP EPS of -$0.07 and revenue of $27.5 million for Q1 2026, reflecting a 2.6% year-over-year decline, indicating pressure in market competition that could affect future investor confidence.
- Production Capacity Boost: The production of vanadium pentoxide (V2O5) surged by 101.7% year-over-year to 2,616 tonnes in Q1 2026, exceeding the upper end of the company's quarterly guidance, demonstrating significant improvements in production efficiency that may aid revenue recovery.
- Stable Cost Control: Adjusted cash operating costs remained flat at $3.90 per pound sold in Q1 2026 compared to 2025, providing a degree of financial resilience despite overall poor financial performance, which could be crucial for future operations.
- Significant Ore Mining Increase: Total ore mined in Q1 2026 increased by 90.8% to 852,046 tonnes, showcasing enhanced resource acquisition capabilities that may lay the groundwork for future production and revenue growth.
See More
Largo Reports Significant Growth in Q1 2026 Performance
- Production Surge: In Q1 2026, Largo's vanadium pentoxide (V2O5) production reached 2,616 tonnes, a remarkable 101.7% increase year-over-year, indicating significant operational efficiency improvements at the Maracás Menchen Mine, thereby enhancing its competitive position in the global vanadium market.
- Ore Mining Increase: The total ore mined in Q1 2026 was 852,046 tonnes, up 90.8% from 446,614 tonnes in Q1 2025, which not only boosts raw material supply capabilities but also lays the groundwork for future production expansion.
- By-product Production Plans: On April 10, 2026, Largo filed a request with the Brazilian Mining Agency to produce and sell copper, platinum group metals, nickel, and cobalt as by-products within its existing mining operations, which is expected to further diversify revenue streams and enhance overall profitability.
- Leadership Structure Update: The company announced that Luis Rendón now serves as Chief Operating Officer and Luânder Peixoto has been promoted to Group General Counsel, aiming to strengthen the professionalism and execution capabilities of the management team to support the company's long-term strategic objectives.
See More
Largo Resources Q4 Financial Results Analysis
- Financial Decline: Largo Resources reported a GAAP EPS of -$0.22 for Q4 2025, with revenues of $22.27 million, reflecting an 8.2% year-over-year decline, indicating challenges and pressures in the market environment.
- Production and Sales Data: Despite the revenue drop, Largo achieved a V2O5 production of 2,961 tonnes in Q4 2025, a 67% increase from 1,775 tonnes in Q4 2024, demonstrating significant progress in production capacity.
- Increased Ore Mined: The total ore mined reached 665,953 tonnes in Q4 2025, a 40% increase from 476,742 tonnes in Q4 2024, showcasing the company's proactive expansion in resource extraction.
- Future Outlook and Guidance: Largo reiterated its 2026 vanadium production guidance, expecting annual production of 10,500 to 12,000 tonnes and sales of 7,500 to 9,500 tonnes, maintaining confidence in future prospects despite current financial challenges.
See More
Largo Terminates Iron Ore Sale Agreement, Seeks New Buyers
- Sale Agreement Termination: Largo announced the termination of its iron ore calcine sale agreement due to the buyer's failure to make a $2.9 million initial payment on time, although this move is not expected to materially impact the company's financial position, liquidity, or operations.
- Ownership Retained: The company stated that it retains full ownership of the 4.5 million metric tons of iron ore calcine, a valuable byproduct from its vanadium operations at the Maracás Menchen mine in Brazil, and no calcine was delivered under the agreement, ensuring operational continuity.
- Tariff Assessment: Largo is assessing the U.S. Supreme Court's tariff decision that could affect Brazilian-origin vanadium products, as the company previously faced a 50% tariff on direct imports, which has now been overturned by the court ruling.
- Inventory Release Potential: The company has high-purity vanadium units stored in a bonded warehouse in the U.S. that have not yet been imported, and if tariffs are modified, these units could be quickly released and supplied broadly to U.S. customers, thereby improving working capital tied to unsold inventories.
See More
