Largo scraps $56M calcine deal as vanadium prices rally

Largo (NASDAQ:LGO) has terminated its previously announced agreement to sell 4.5 million tonnes of iron ore calcine, a move that comes as the company pivots to address shifting U.S. trade policies and a surge in vanadium prices.

The Toronto-based miner ended the contract—originally valued at more than $56 million—after the unnamed counterparty failed to deliver an initial $2.9 million payment.

Largo had extended the payment deadline to February 20, but issued the termination notice Monday after the cure period expired without receipt of funds.

The company maintains full ownership of the inventory and is currently in discussions with alternative buyers.

The deal’s collapse coincides with significant price action in the vanadium market.

U.S. ferrovanadium (FeV) prices have strengthened significantly since mid-February, trading near $23/lb, while European benchmarks rose to $27.7/kg.

Prices for vanadium pentoxide have also climbed above $5.5/lb, reflecting structural supply constraints in North America.

The company is also assessing its operational strategy following recent U.S. Supreme Court decisions regarding executive tariff authority.

Largo, which produces vanadium at its Maracás Menchen Mine in Brazil, has been subject to a 50% tariff on direct Brazilian imports.

With those duties now under legal review and media reports suggesting potential reductions to a 10%–15% range, Largo indicated it is ready to release bonded vanadium inventory currently held in U.S. ports to capitalize on the price premium in the American market.