Neometals Ltd announced the signing of a binding offtake agreement for the Vanadium Recovery Project (VRP1) between Novana Oy, a subsidiary of Recycling Industries Scandinavia AB (RISAB), and Glencore.
In accordance with the terms of the Offtake Agreement, Novana will exclusively sell and deliver to Glencore, and Glencore will buy and accept delivery of all saleable vanadium-bearing products (including but not limited to V2O5 and ferrovanadium) produced by Novana for an initial period of 5 years from the commencement date. After that, the Offtake Agreement will automatically renew in 2-year increments unless either Novana or Glencore decide not to do so.
The delivery term will begin on 1 January 2026, or any earlier date Novana notifies Glencore with a year’s notice. A prevailing market-publication determines the cost of the produced and supplied vanadium bearing items. Glencore will also provide technical expertise, guidance, and insights through a joint steering committee throughout the early stages of VRP1 development.
“Securing take or pay offtake for 100% of VRP1 vanadium products represents a significant milestone as we progress towards a FID this quarter. Removing volume risk on offtake is seen as a key requirement for securing project finance and we have mitigated this risk with the take or pay nature of our Offtake Agreement with a Tier 1 counterparty in Glencore,” Neometals Managing Director Chris Reed said.
“The Offtake Agreement further emphasises the anticipated future need for high purity material in the market. This is supported by significant expected demand from the vanadium redox flow battery sector and other potential high purity applications,” Reed stated.
