US Vanadium Holding Company has acquired a vanadium production facility from a Russian steel producer Evraz.
Located in Hot Springs, Arkansas, the facility manufactures nearly 12 million pounds of vanadium oxide each year.
Vanadium oxide is used extensively as a catalyst in various industrial chemical reactions. It is used in the production of chemicals, petrochemicals, gases, and storage batteries.
Vanadium oxide produced at the acquired facility is of very high purity levels. It is used in applications such as maleic anhydride catalyst, bismuth vanadate pigments and vanadium redox flow batteries.
It also manufactures a set of downstream vanadium-based chemicals used by companies in the catalyst, chemical, petrochemical, titanium and energy storage industries, US Vanadium said.
US Vanadium director Terry Perles said: “We are very pleased to have concluded this acquisition and to accelerate our plans to significantly ramp-up production in Hot Springs of a variety of vanadium products, including the highest-purity vanadium pentoxide made anywhere in the world.
“In addition to creating new jobs in Arkansas, the Hot Springs facility will return the US to a position of global leadership in the production of this critical and strategic material.”
The acquired entity currently employs 50 people. US Vanadium noted that it will increase the personnel the facility by up to 40% over the next two years.
US Vanadium’s major investors include TechMet, Elysee Development, and The Lind Partners.
TechMet chairman and CEO Brian Menell said: “Vanadium is a major contributor in the growing technology metals market, and we are excited to be expanding our involvement in the sector with this purchase.
“We are very pleased to be supporting US Vanadium Holding LLC to stimulate the production of this strategic metal in the US. We predict significant market growth over the coming years with growing demand from large-scale grid storage.
“We expect to see the Hot Springs facility growing both in terms of capacity and job opportunities to meet this demand.”
Evraz acquired a 73% stake in the company for $110m in 2006.
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