So there’s this element called Vanadium, you might have heard of it but probably not. Besides sounding like something you use to build a warp-drive, you need it to live, like lots of trace metals. Why it’s even more important is its essential to building the latest generation of Vanadium redox flow batteries (VFBs) which are the core technology in the world’s largest grid scale battery under construction in China.
So Berkwood Resources (BKR.V) had a very good Friday the 13th announcing its acquisition of the Roscoe Vanadium property in Quebec. The deal is between Berkwood and a B.C. company for 1.5 million common shares and $15,000 in cash.
The Roscoe Property (the “Project”) comprises forty (40) claims totalling 2,189.19Ha (21.89km2) in an area of known iron-titanium-vanadium mineralization and features certain historic work and more recent airborne geophysical surveys. The Project property is easily accessible by main and secondary (dirt logging) roads and is located about 250km north of the Baie-Comeau municipality.
Berkwood currently holds three Quebec-based land assets holding valuable materials needed in battery technologies. A site in Delbreuil where lithium deposits abound, a second site near Baie Comeau with Copper-Nickel-Cobalt scattered about, and a parcel at Lac Guéret next to Mason Graphite, which is known for particularly good graphite deposits and a nine-figure market cap. Survey and drilling work is complete at all three sites, with Lac Guéret being the most advanced in terms of detail and prep work.
Adding a Vanadium-rich parcel of land to its portfolio means, regardless which way the battery tech market moves, Berkwood will be in a strong position to be a major player.
Tom Yingling, President and CEO stated “we are thrilled to have located the Roscoe property as it begins to fill our ambition of including vanadium in our portfolio of the essential energy storage commodities. Vanadium used in flow batteries requires high quality primary sources of vanadium, and early chemical indications are that the Project has great potential and is located in the same great mining jurisdiction as our other compelling battery commodity projects”.
Even niftier, the new property is in the same mining jurisdiction as their current projects so when the demand for these commodities starts to spike, getting up and running should be relatively quick.
In terms of the flow batteries needing all this Vanadium, the technology is already proven. The plant in China will balance a local power grid with a phase 1 capacity of 300 MW of VFB electrode stacks, a phase 2 capacity of 1GW, and a phase 3 capacity of 3GW.
Some pretty sweet numbers and the technology looks like it’s scalable as well. The facility is being built by a local power-wall manufacturer, who will need lots and lots of… yep, vanadium as they continue to ramp up production.
Battery based grid balancing and storage is a steadily growing market, and the major manufacturers have one thing in common, an insatiable appetite for the commodities needed for their next generation of high-tech batteries. These include cobalt, graphite, lithium and… stop me if you’ve heard this before… vanadium.
Berkwood has now secured potential sources for all the ingredients for 21st century battery technology and will be ready to catch the building wave of demand in the market.
It’s interesting to note it seems the clever folks at Berkwood were able to take advantage of a recent slump in their stock price to leverage this purchase. Thanks to a mostly stock-based transaction, they get a nice chunk of land for a fire-sale price.
On the flip side, the benefits of this latest acquisition still isn’t reflected in the stock, so it’s a good opportunity for buyers to get in early before escalating demand for these materials push the price way higher.
Some quick facts on Vanadium:
Currently used in Vanadium redox battery.
Needed to create next generation lithium-ion batteries either with Lithium vanadium oxide in current battery designs, or as the possible cathode in a Lithium vanadium phosphate battery.
Used to bond titanium to steel.
Key ingredient in the manufacture of sulphuric acid.
Used to create infrared blocking-coating on windows.
Buying action on Berkwood has been hot Monday morning post-news, with the company up 18.9% on the news. An earlier slump in stock price means there’s still value to be had even if you got the news late, and it may be well worth watching this outfit that just keeps adding to the asset base.
FULL DISCLOSURE: Berkwood Resources is an Equity.Guru client and we own stock in the company.