VANADIUM THE STRATEGIC GREEN METAL
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VANADIUM
THE STRATEGIC GREEN METAL
TSX LGO CORPORATE PRESENTATION | FEBRUARY 2021
largoresources.com | largocleanenergy.com | largoVPURE.com
Disclaimers
This corporate presentation should be read in conjunction with the Largo Resources Ltd. (“Largo”, or the “Company”) public disclosure filings available on its issuer profile at www.sedar.com. Largo has not authorized anyone to provide
prospective investors with additional or different information. Largo is not offering to sell shares or other securities in any jurisdiction where the offer or sale of such securities is not permitted. Except as otherwise specifically stated, Mr. Paul
Sarjeant B.Sc., Manager of Geology to Largo, and a Qualified Person as defined by NI 43-101 has reviewed and approved the scientific and technical disclosure contained herein.
Market and Industry Data
This corporate presentation of Largo includes market and industry data and forecasts that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that the information
contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of included information. Although management believes it to be reliable, management has not
independently verified any of the data from third-party sources referred to in this presentation or analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying economic
assumptions relied upon by such sources.
Forward-Looking Statements
This presentation contains forward-looking information under Canadian securities legislation, some of which may be considered "financial outlook" for the purposes of application Canadian securities legislation ("forward-looking statements").
Forward‐looking information in this presentation includes, but is not limited to, statements with respect to our ability to build, finance and operate a VRFB business, our ability to protect and develop our technology, our ability to maintain our IP,
our ability to market and sell our VCHARGE± battery system on specification and at a competitive price, our ability to secure the required production resources to build our VCHARGE± battery system, and the adoption of VRFB technology
generally in the market. Forward‐looking information in this presentation also includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; costs of future activities and operations; the
extent of capital and operating expenditures; and the extent and overall impact of the COVID-19 pandemic in Brazil and globally. Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this presentation, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or Largo Clean Energy to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on SEDAR from time to time. Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&As which also apply.
Investors are advised that National Instrument 43-101 Standards for disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported
separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
This corporate presentation uses the terms “measured,” “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities
and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to
assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists or is
economically or legally mineable.
Trademarks are owned by Largo Resources Ltd.
All amounts expressed are in U.S. dollars, denominated by “$”.
2
A Greener Future with VANADIUM
Steel and Rebar
Vanadium can lower the carbon footprint and increase
the economic efficiency of the entire steel value chain.
Grid level energy
storage with VRFBs.
1 kg of V + 1 tonne of steel results in an
increase of ~84% in tensile strength.
VRFBs
Vanadium redox flow batteries (VRFB) are safe,
Vanadium master alloys are scalable, long-duration energy storage batteries that
use a vanadium electrolyte liquid solution to store
essential for aerospace applications. and release large amounts of energy.
VRFBs have a lifespan of over 20 years and the
electrolyte is reusable.
Vanadium can lower the carbon footprint and increase the Master Alloys
economic efficiency of the entire steel value chain. Advanced Titanium-Aluminum-Vanadium master
alloys are essential in the manufacturing of superior,
fuel-efficient commercial and military aircraft.
Source: Vanitec. Texas A&M University. 3
LARGO
RESOURCES
Contributing to a lower carbon future with our
vertically integrated, world-class line of high-quality
vanadium products and superior VRFB technology.
4
World-class, vertically integrated VANADIUM company.
• Industry preferred supplier of high-quality vanadium products. • Products are sourced from one of the world’s highest-grade vanadium
deposits at the Company’s Maracás Menchen Mine located in Brazil.
• Largo services multiple vanadium market applications through
the supply of its unrivaled VPURE™ and VPURE+™ products. • Largo Clean Energy is focused on the advancement of renewable energy
storage solutions through its world-class VCHARGE± VRFB technology.
5
Investment Proposition
Industry preferred, vertically integrated vanadium supplier with solid balance sheet.
Accretive growth strategy with world-class product line and superior VRFB technology.
Unique sustainability approach with proven results.
Opportunity to invest in the global low carbon and clean energy transition.
Highly skilled management team with decades of experience to advance large-scale projects.
6
Unrivalled Product Line: VPURE™ and VPURE+™
New Product Addition in 2021
The Company expects to complete the construction
and subsequent ramp up and commissioning of its
vanadium trioxide (V2O3) plant in Q3 2021.
• VPURE+ Flakes are • An industry preferred • Vanadium pentoxide • VPURE Flakes are
used to produce One of the main applications of V2O3 is vanadium
high purity vanadium high purity vanadium with a high level of
flakes with a typical powder. purity. ferrovanadium and electrolyte, which is required in the manufacturing
• vanadium carbon of VRFB systems.
vanadium content of • VPURE+ Powder has a VPURE Flakes have a
nitride, achieving
99.5%. typical vanadium minimum vanadium
grade specifications in
• VPURE+ Flakes are content of 99.5% content of 98.0%.
the range of 78.0% to
mainly used in the exceeding the industry • VPURE Flakes are 82.0% vanadium. Largo Products Are Unique Due to Their
production of master standard of 99.0%. used to produce Natural High Purity
alloys, where it • VPURE+ Powder has ferrovanadium and
provides high strength- low levels of impurities vanadium carbon Largo products Market standards
to-weight ratios for the which makes it ideal for nitride for the steel
titanium alloy and catalyst applications industry.
aerospace industries. and vanadium > 99.50%
• Approved by all major electrolyte which is 99.0%
master alloys used in VRFBs. > 98.50%
producers. > 98.0%
Price premiums associated with high purity V2O5 flake and powder. Standard grade flake High-purity flake Standard products High-purity products
Largo is one of only two major producers that is qualified to supply high purity vanadium.
7
Record Operational Results in Q4 and FY 2020
Solid balance sheet in place to advance strategic initiatives
9M Q4
RESULTS3 2018 2019 2020
2020 2020
V2O5 production kt 9,830 10,577 8,485 3,340 11,825
Q4 and FY 2020 Production and Sales Highlights
V2O5 sold kt 10,019 10,160 6,508 3,741 10,260
Record quarterly V2O5 production of 3,340 tonnes in
Q4 2020, an 11% increase over Q4 2019.
Vanadium sales
from contracts with $M CAD455.4 CAD277.3 78.7 Record annual V2O5 production of 11,825 tonnes in
customers 2020, an increase of 12% over 2019; Within 2020 V2O5
Re-measurement of production guidance of 11,750 – 12,250 tonnes.
trade receivables / $M CAD66.0 CAD137.3 (1.0) Quarterly global V2O5 recovery4 of 80.6% in Q4 2020, a
payables 4% increase over Q4 2019.
Revenues $M CAD521.4 CAD140.0 77.7
Record annual global V2O5 recovery4 of 81.4% in
Net income (loss) $M CAD314.0 CAD(36.2) (0.1) 2020; a 4% increase over 2019.
Cash operating 2020 sales guidance exceeded: Total V2O5 equivalent
$/lb 3.38 2.95 2.70 sales of 10,260 tonnes in 2020, exceeding high-end
costs ex. royalties1
V2O5 sales guidance by 260 tonnes.
Cash $M CAD206.2 127.5 74.9
Record quarterly sales of 3,751 tonnes of V2O5
equivalent in Q4 2020, a 31% increase over Q4 2019.
Debt-free: Full repayment of all outstanding credit
facilities between January 29 and February 3, 2021.
1. Cash operating costs excluding royalties is a non-GAAP measure. Please see information on this non-GAAP measure
in the "Non-GAAP Measures" section of the Company’s Management Discussion and Analysis for three and nine
months ended September 30, 2020.
2. Effective May 1, 2020, the Company’s Canadian and Irish entities have changed their functional currency to the U.S.
dollar and the Company has changed its presentation currency from Canadian dollar to the U.S. dollar. Prior period
comparative information is restated in U.S. dollars to reflect the change in presentation currency.
3. Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery. 8
Contributing to a LOWER CARBON FUTURE with our safe
and sustainable VCHARGE± battery technology.
The growing shift toward renewable energy generation will
require vast amounts of energy storage for integration.
VRFBs are an ideal solution for long-duration energy storage
as a result of their sustainability and safe operating attributes.
VRFBs have an estimated lifespan of over 20+ years and the
electrolyte is reusable. VRFBs:
Renewable Energy Sustainability, Safety
Largo Clean Energy is a vertically integrated VRFB
business that can provide one of the most advanced VRFB
Integration and Long-Duration
systems to the market.
↑122x 4,584GWh
total demand for batteries
*increase in global energy from the stationary storage
storage installations by and electric transport sectors
2040. by 2040.
117% 40% Vertically
Y-o-Y increase in U.S. energy
storage deployments as of Q2
Increase in global
electricity demand by
Integrated
2020. 2040. Solution
Source: BNEF, U.S. EIA, IEA, Wood Mackenzie *beginning in 2019. 9
VCHARGE±: One of the World’s Most Advanced VRFB Technologies
Uniquely Positioned with Reliable Source of High Purity Vanadium Supply
Safety Sustainability Unmatched Long-Duration Proven Grid-Scale
Power Density Discharge Durability With
Aqueous electrolytes Electrolyte does not Capability Unlimited Cycles
operate at low degrade and can be Proprietary stack
temperatures and are reused at end of battery technology drives one Proprietary purification No capacity loss with
nonflammable. life. of the lowest-cost energy enables cost-effective use or time. Easy to
storage solutions. solutions in specific long- maintain. Suitable for
duration applications. multiple applications.
Combining long duration and deep discharge
capability with sub-cycle response times makes the
VCHARGE± technology capable of serving a broad mix
of renewable energy storage applications.
10Stationary Energy Storage will Require $662 Billion
of Investment over the Next Two Decades
Long-Duration Storage Capacity Projection by Region Storage Capacity Projection by Duration
North America, Western Europe, and Asia Pacific are expected to account for
approximately 86.7% of the new long-duration storage capacity installed worldwide
through 2027.
Long-duration (4 to 12+ hours) market growth of 8x by 2025 reaching $16B worldwide.
4 to 10-hour duration and high cycling also required by solar and wind energy shifting.
Source: Navigant Research, Wood Mackenzie 11Renewable Energy Storage Targets will be a Significant
Contributor to U.S. Energy Storage Demand
California Driving U.S. Energy Storage Demand Projected Cumulative U.S. Grid-related Deployment By Application
California officials expect that the state needs
1 GW of new long-duration energy storage by
2026 to advance its clean-energy transition.
For California to achieve its target of eliminating
greenhouse gas (GHG) emissions from its
45-55GW
electricity sector by 2045, the state will need to
deploy between 45GW and 55GW of long-
duration energy storage.
of long-duration energy
California’s landmark SB 100 clean energy
storage by 2045.
legislation will bolster reliance on solar power
generation resulting in more long-duration energy
storage needed to help with integration.
State Energy Storage Targets
As of April 2020
U.S. stationary storage deployment is expected to more than quadruple by the end
NJ NY VA NV MA of 2022.
Much of U.S. renewable energy storage growth is expected from energy-shifting
2GW 3GW 3.1GW 1GW 1GWh applications in California.
by 2030. by 2025. State targets and mandates are set to drive future renewable energy storage
by 2040. by 2030. by 2035.
demand over the next decade.
Source: CPUC, CESA, Strategen, BNEF, ESA 12Our Approach to Sustainability
Responsible Mining is the Foundation of Our Operations
(per tonne produced) 2018 2019 Change
Total energy 5,492.69 5,081.78
7.5% ↓
consumption KWh KWh
Low Impact Operations in Maracás
COVID-19 Precautions
Heavy fuel oil
0.83 tonnes 0.81 tonnes 2.5% ↓
(HFO)
We continue to prioritize the health and
Since operations commenced in 2014, Largo
Diesel safety of our workforce and extend
has met or exceeded all environmental (mine & industrial 0.66 tonnes 0.64 tonnes 3.0% ↓ support to our local communities as we
standards and regulations. operations)
proactively manage the circumstances
Focus on Local Employment 99%+ related to the global COVID-19 pandemic.
Liquified
1.00 kg 1.04 kg 4.0% ↑
Brazilian employees with 79% from Bahia petroleum gas
Over 370,000 masks supplied to local
state.
Water re-use 94% communities.
Driving economic development within
Maracás: R$1.1 million spent in training
and development in 2019. For more information on Largo’s approach to sustainability,
please download our latest Sustainability Report here:
13Unlocking the Full Potential of Our World-class Asset
Commercial independence: Increasing production by 10%:
Increasing overall vanadium customer portfolio with a focus on Additional upgrades being performed to the kiln in Jan. 2021,
high purity vanadium which include price premiums. increasing nameplate capacity from 1,000 tonnes to 1,100 tpm of V2O5.
Titanium Dioxide (TiO2) project: Upgrade and expand known resources:
Ilmenite and TiO2 chemical pilot plants in progress to develop a The Company plans to release an updated technical report in late Q1
TiO2 product. Additional updates expected in Q1 2021. 2021 to upgrade and expand known resources.
V2O3 product addition: Ferrovanadium (FeV) product addition:
Expected in Q3 2021. One of the main applications of V2O3 is Creating downstream optionality and flexibility for Company’s product
vanadium electrolyte, which is required in the manufacturing of conversion. The Company is currently evaluating timing on the
VRFB systems. construction of its FeV plant.
Largo is committed to pursuing strategic growth opportunities and Company
reinvestments through disciplined capital allocation.
14Appendix
15Company Overview
Capitalization Structure: TSX LGO Analyst Coverage Top Ownership
Share price (Feb. 10/21 – CAD$) $1.90 Funds managed by Arias Resources Capital
CIBC Capital Markets Bryce Adams
52-week high (CAD$) $2.18 Management LLP
Paradigm Capital Gordon Lawson
47.0%
52-week low (CAD$) $0.56
H.C. Wainwright & Co., LLC Heiko F. Ihle West Family Investments, LLC
Shares issued/outstanding 564.0 million RBC Capital Markets Andrew Wong 8.0%
Warrants 104.0 million Grantham Mayo Van Otterloo & Co. LLC
Morgan Stanley Carlos de Alba
1.9%
Options/RSUs 8.2 million Credit Suisse Curt Woodworth
Market cap (CAD$) $1.1 billion
Cash position (Sept. 30, 2020) $74.9 million
Highly Experienced Management and Board
PAULO MISK ÁLVARO RESENDE ALBERTO ARIAS, NON-EXECUTIVE CHAIRMAN
PRESIDENT AND CEO PRODUCTION DIRECTOR DAVID BRACE, DRIECTOR
JONATHAN LEE, DIRECTOR
ERNEST CLEAVE PAUL VOLLANT PAULO MISK, DIRECTOR
CHIEF FINANCIAL OFFICER DIRECTOR OF SALES AND TRADING DANIEL TELLECHEA, DIRECTOR
KOKO YAMAMOTO, DIRECTOR
LUCIANO CHAVES
VP, FINANCE AND ADMINISTRATION,
BRAZIL Ownership data captured from S&P Market IQ.
Shares issued and outstanding, warrants and options as September 30, 2020. 16The Highest-grade Vanadium Operation, Globally
Building on the success of 2020 in the year ahead.
Historical Production and Cash Cost Overview
11,825
10,577
9,830
9,297
Tonnes of V2O5 Cash operating costs excluding royalties per lb sold
2021 Guidance Campbell Pit Reserve Statement – Effective May 2, 20172
Annual V2O5 Equivalent Production 12,000 – 12,500 tonnes V2O5 Head
Tonnes (kt) V2O5 % in Con.
Grade (%)
V2O5 Equivalent Sales 12,250 – 12,750 tonnes
Cash Operating Cost Guidance Excluding Royalties1 $3.10 – 3.30/lb V2O5 Proven 17,570 1.14 3.21
Total Cash Costs1 $3.50 – 3.70/lb V2O5
Probable 1,440 1.26 3.20
Sustaining Capital Expenditures $8.0 – 10.0 million
Total in pit
V2O3 Processing Plant Capital Expenditures $7.0 – 9.0 million 19,010 1.15 3.21
reserve
1. Cash operating costs excluding royalties is a non-GAAP measure. Please see information on this non-GAAP measure in the "Non-GAAP
Measures" section of the Company’s Management Discussion and Analysis for the three and nine months ended September 30, 2020.
2. Maracas Menchen Project, Bahia, Brazil, Independent Technical Report - An updated Mine Plan, Mineral Reserve and
Preliminary Economic Assessment of Inferred Resources. October 26th, 2017 (effective date May 2nd, 2017).
17COVID-19 Priorities
We continue to prioritize the health and safety of our workforce and
extend support to our local communities as we proactively manage
the circumstances related to the global COVID-19 pandemic.
Four ventilators donated
Over 370,000 masks produced
6,000 test kits acquired
8,000 meal kits delivered
PPE materials donated
18Estimated CO2 Savings From the Use of Vanadium in Steel
Same quantity of CO2 produced by the entire
Republic of Philippines in 2017
36.2 Gt CO2
PRODUCED WORLDWIDE
IN 2017
The estimated CO2 savings
from V-HSLA steel equates to
those gained, annually, by
planting approximately
260 Million
Trees
The iron and steel sector accounts for 8% of global energy demand
and 7% of the energy sector CO2 emissions worldwide.
Around 25-30% of industrial CO2 emissions come from steelmaking,
with coal supplying 74% of the sector’s energy input.
Source: Texas A&M University 19Vanadium Recovery Continues with Steady Demand Growth
Medium and Long-term Vanadium Demand Fundamentals London MB V2O5 Prices (US$/lb)
$8
In the first weeks of 2021, vanadium prices have increased in all main markets on the back of $7
solid demand, low inventories and renewed optimism in the overall metals and industrial $7
complex $6
$6
Chinese infrastructure sector continues to drive vanadium demand following the
implementation of country’s new rebar regulations. $5
$5
• Chinese crude steel production was 690.8 million tonnes from Jan. to Aug. 2020, representing
a Y-o-Y increase of 4.6%. $4
• Chinese rebar production was 170.9 million tonnes from Jan. to Aug. 2020, representing a
Y-o-Y increase of 5.3%.
• Chinese V2O5 consumption is estimated to be 47.9 million tonnes in 9M 2020, marking a 5.4% increase EU China
over 9M 2019.
• China became a net-importer of vanadium following increased consumption in 2020.
Expected government stimulus programs on a global basis; USA, India, EU and China should London MB FeV Prices (US$/kg)
further increase vanadium demand:
$35
• In May 2020, the Chinese government unveiled a fiscal stimulus package of approximately $506 billion
which is expected to drive further steel sector and vanadium demand growth.
$30
At current prices, marginal stone coal vanadium producers remain out of the market.
Substitution eliminated with current benchmark vanadium prices.
$25
Supply is dominated by Chinese co-product production which is currently estimated to be at
capacity. New supply will be derived from primary or secondary vanadium sources. $20
Renewable energy transition is expected to drive new VRFB deployments worldwide.
• New U.S. energy policies under President Biden expected to contribute to adoption of renewable energy.
EU China
Source: Company Analysis, Metal Bulletin, Roskill, IMF, Wood Mackenzie, CISRI 20Vanadium Market Explained
Vanadium Consumption by Region (MTV) Global Vanadium Production by Method Primary Vanadium Mine Comparison
11.9 3.2
13.1 Bushveld
12.7 12.9 Largo (Vametco)
11.8 13.2 7.5
12.3 8.1 Resources 21%
11.6 23.8 2.0
24.6 41% 70%
23.5 16.7 18%
22.3 Glencore 1.2
(Rhovan)
53.5 12%
44.1 47.3 38% 0.6
35.4 40.1 0.3
2016 2017 2018 2019 9M 2020 Co-product production Campbell Pit, Vametco Rhovan (Glencore)
Primary production Maracás Menchen (Bushveld)
Mine
China RoW North America Europe Secondary production
(recycling spent catalysts) Head Grade (% V2O5) Concentrate Grade (% V2O5)
Global Vanadium Cost Curve Global Vanadium Demand by Sector Global Vanadium Supply By Region
$17.00
91.0%
3%
$15.00
Cash Costs (US$/lb V2O5)
9%
4.5%
$13.00 Largo Resources 2021 7%
$11.00
cash operating cost 3.5%
15%
guidance (excluding 8%
$9.00 royalties)3: 1.0%
$3.10-3.30/lb V2O5 44%
53%
$7.00
41% 20% China
$5.00
Russia
Aerospace alloy
$3.00 Chemical catalyst South Africa
Steel alloy (rebar) Aerospace alloy
Other (VRFB) Brazil
$1.00 Chemical catalyst Other (VRB)
USA
Other
Cumulative Volume MTV
1. Maracas Menchen Project, Bahia, Brazil, Independent Technical Report - An updated Mine Plan, Mineral Reserve
Source: Vanitec, CISRI, Company Data, Metal Bulletin, TTP Squared 2.
and Preliminary Economic Assessment of Inferred Resources. October 26th, 2017 (effective date May 2nd, 2017).
Company presentation data, Roskill, TTP Squared.
3 . Cash operating costs excluding royalties is a non-GAAP measure. Please see information on this non-GAAP measure in the
"Non-GAAP Measures" section of the Company’s Management Discussion and Analysis for the year ended December 31, 2019.
21Vanadium Applications
Master Alloys
Largo’s V2O5 is
approved by all master
alloy producers
~3,900MTV
suppling the western
world.
Steel Master Alloys Chemicals & Catalysts VRFBs
• Ferrovanadium acts as a • Ti-Al-V alloy producers are one • Vanadium has a wide range of • Vanadium redox flow batteries Chemicals/Catalysts
hardener, strengthener and anti- the largest consumers of chemical and catalyst are scalable energy storage
Vanadium is required
corrosive additive in the vanadium outside of the steel applications in the form of V2O5 batteries that use a vanadium
for critical chemical
production of high-strength industry and the market is and V2O3. electrolyte liquid solution to store
and catalyst
steels, including other ferrous growing substantially. • Vanadium provides corrosion and release large amounts of ~3,650MTV
applications.
products. production chain. • Possess very high strength-to- resistance and pigmentation energy.
• Used in steel rebar for weight ratios and are used in the properties needed in corrosion • Estimated lifespan of 20+ years;
construction, automotive industry aerospace industry. inhibitors and dyes. • Offers scalable storage capacity
for high-strength, corrosion- • Require high purity vanadium • Chemicals in vanadium can also and is able to immediately VRFBs
resistant components used in and deploys strict documented be used in medication and release energy;
infrastructure and components of Vanadium is required
vehicles, rail, pipelines, and used
procedures to assure the process production of supplements to • Is able to discharge 100% for electrolyte
eliminates the possibility of manage several health without any damage to the
as a corrosion resistant coating. manufacturing in
contamination with high-density conditions. battery; ~1,400MTV
• ~91% of global vanadium materials. •
vanadium redox flow
Other uses: optical applications • Provides users with a guaranteed batteries
demand is derived from steel, • Provide fuel efficiency and such as making of laser crystals, uninterrupted power supply.
including rebar. superior resistance. nanofiber and nanowire
applications.
Price premiums associated with selling high purity vanadium in these markets.
Source: Vanitec, Roskill 22VRFB Applications
Opportunity VRFB Value Proposition
VRFBs can effectively enable shifting of renewable generated
electricity to align with consumer demand by converting a
virtually free energy source into clean electricity for consumers
The reoccurring solar and wind energy or businesses.
generation requires a long-duration
Renewable Energy Integration storage solution that can handle the Additionally, VRFBs can provide ramp-rate control and
need for daily deep-discharging. frequency response services, smoothing out any PV power
fluctuations while providing better alternative response times vs.
standard fossil-fuel power generators.
VRFBs store energy when electricity lines, substations, and
other equipment have excess bandwidth and then discharge to
Most grid systems are decades old and handle peak demands, which allows for delaying or avoiding
need efficient, stabilizing strategies to the upgrade of T&D assets. This greatly improves the utilization
Utilities / Grid Optimization assist with the modernization of of existing T&D infrastructure.
renewable integration and transmission
and distribution (T&D) infrastructure. VRFBs can also store renewable energy when generation
exceeds capacity of transmission infrastructure and discharge
energy when generation capacity is low, enabling cyclic
renewable generation to fully utilize T&D infrastructure. This
allows for delaying or avoiding the upgrade of T&D assets.
A microgrid is a localized electricity VRFBs provide microgrids and island energy systems with a
system including sources and loads reliable source of clean energy, enabling a full transition away
that may operate connected with a from conventional generation with fossil fuels. VRFBs also
Microgrids provide an unlimited source of power for microgrids when
traditional wide area grid or
disconnected in an "island mode”. access to neighboring grids is unavailable.
Source: Vanitec, Navigant Research 23VRFB Applications continued
Opportunity VRFB Value Proposition
As the world transitions to a lower carbon VRFBs can enable a full transition away from conventional
Commercial and Industrial future, more and more commercial and fossil fuels utilizing long-duration renewable energy storage
industrial businesses are focusing on
Energy Independence integration. VRFBs provide excellent surrogates for balancing
clean energy integration to meet newly and reserves of PV and wind integration for commercial and
set carbon reduction goals. industrial applications.
Given the demanding profile of EV VRFBs can support renewable energy integration for EV
charging over a typical day, the long- charging stations by reducing grid demands through ultra-fast
EV Charging Integration duration discharge cycling with no charging. More importantly, due to the high volume of traffic
degradation and non-flammability makes associated with EV charging, a VRFB’s inherent safe attributes
VRFBs an ideal choice for integration. make it ideal for EV charging integration.
Source: Vanitec, Roskill 24Investment Proposition
Industry preferred, vertically integrated Accretive growth strategy with Unique sustainability approach with
vanadium supplier with solid balance world-class product line and superior proven results
sheet VRFB technology
Vanadium is responsibly mined with proven
Among the world’s largest, highest-grade Opportunity to grow the Company’s recurring
1. history of corporate social responsibility initiatives.
primary vanadium producers. revenue base in the premium steel markets and with
Largo Clean Energy. VRFB electrolyte can be consecutively reused at
2. One of the lowest-cost producers of vanadium the end of a 20+ year battery life.
Provides Largo with multiple strategies for sector
in the world. application.
.
3. Strongly focused on advancing Largo Clean Robust project pipeline in place.
Energy VRFB business for the growing
renewable energy sector.
4. Direct exposure to commodity with steady
demand growth profile.
Opportunity to invest in the global low Highly skilled management team with
5. Long mine life with substantial resource and
carbon and clean energy transition decades of experience to advance
exploration upside.
large-scale projects
Vanadium can lower the carbon footprint of the
6. Robust pipeline of accretive growth initiatives to
entire steel value chain.
add significant value. Dedicated team of industry experts with decades
Global energy storage capacity could grow of VRFB, commercial, operational and capital
at a CAGR of 31%, recording 741 GWh of markets experience.
cumulative capacity by 2030
Source: Wood Mackenzie
25Positioning Largo for the Future
Steady vanadium demand
profile: Robust medium and
long-term demand driven by
newly announced stimulus
programs. Increase in demand
for high quality steel and alloys
globally.
TiO2 project: Ilmenite and
TiO2 chemical pilot plants
in progress to develop a
Largo Clean Energy
TiO2 product.
Drive global VRFB
deployments.
V2O3 product addition:
Required for VRFB electrolyte.
Commercial independence: Focus on high Maintain Q1 cost
purity vanadium sales with price premiums. position: continue cost
discipline going forward.
Drilling on near mine
targets to upgrade and
expand known resources:
New technical report
expected in late Q1 2021.
26Alex Guthrie Senior Manager, External Relations 416-861-9797 info@largoresources.com Corporate Office 55 University Avenue Suite 1105 Toronto, Ontario M5J 2H7 largoresources.com | largocleanenergy.com | largoVPURE.com
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