Announcement
Largo Inc. (NASDAQ:LGO, TSX:LGO) reported that its subsidiary received a firm‑fixed‑price delivery order valued at $60.1 million from the U.S. Defense Logistics Agency Strategic Materials. The order is issued under a recently awarded five‑year Indefinite Delivery, Indefinite Quantity (IDIQ) contract.
Order Details
The delivery order calls for supply of high‑purity vanadium pentoxide produced at Largo’s Maracás Menchen operation in Bahia, Brazil. Deliveries are scheduled to be made through January 2030. The order forms part of a larger shared award with an aggregate ceiling of $125 million, under which each delivery order represents a firm commitment on volume, price and delivery schedule.
Operational Impact
Largo indicated that it will adjust its production and sales programs beginning July 2026 to accommodate the new order. Management expects the order to improve the company’s average realized vanadium price, enhance its sales mix and increase its exposure to the U.S. market.
Company Profile
Largo describes itself as the world’s largest primary vanadium producer, supplying vanadium products to the steel, aerospace, defense, chemical and energy‑storage sectors. The Toronto‑based company also holds a 37.4 % ownership stake in Storion Energy, a joint venture with Stryten Energy that focuses on electrolyte production for vanadium‑flow‑battery energy‑storage solutions in the United States.
Market Reaction
Following the announcement, Largo’s shares rose as much as 2 % in after‑hours trading on Tuesday.