Largo’s $56M Calcine Sale at Risk as FeV Prices Jump 30%
The buyer missed a US$2.9 million payment under the US$56 million iron ore calcine agreement, giving Largo until February 20, 2026 to cure or terminate and seek other deals. US ferrovanadium prices rose roughly 30% month-over-month to about US$17 per pound, driven by conversion constraints and tariffs.
1. Iron Ore Calcine Transaction Update
Largo announced that the purchaser failed to deliver the US$2.9 million initial payment under the US$56 million iron ore calcine sale agreement, triggering a cure period that expires on February 20, 2026. If payment is not received, the company will terminate the contract, explore legal remedies for damages and pursue alternative transactions for the 4.5 million tonnes of calcine material.
2. FeV Price Surge
US ferrovanadium prices climbed from the mid-US$13 per pound range to approximately US$17 per pound over the past month, representing about a 30% increase. European prices rose only 7–8% to roughly US$25.6 per kilogram, widening the North American premium to more than 50%.
3. US Market Constraints and Tariffs
Structural tightness in the US FeV market is driven by limited conversion capacity and trade restrictions, including anti-dumping measures and sanctions that constrain alternative supply sources. Largo currently supplies through a Canadian converter to avoid a 50% Brazilian import tariff and stands ready to expand direct Brazilian shipments if tariff barriers are removed.