en.Wedoany.com Reported - Largo Inc. (TSX: LGO) (NASDAQ: LGO), the world's largest primary vanadium producer, announced on July 7, 2026, that its subsidiary, Largo Resources USA Inc., has received a fixed-price delivery order valued at $60.1 million from the Strategic Materials Division of the U.S. Defense Logistics Agency (DLA). This order is based on a five-year indefinite-delivery/indefinite-quantity (IDIQ) contract awarded to Largo on June 30, 2026, with a total maximum value of up to $125 million.
The delivery order involves supplying high-purity vanadium pentoxide (V₂O₅) to the U.S. National Defense Stockpile, with the product to be produced at Largo's Maracás Menchen mine in Bahia, Brazil. The delivery period will extend through January 2030.
Largo Inc. is the world's largest primary vanadium producer, and its Maracás Menchen mine in Bahia, Brazil, is one of the highest-grade vanadium mines globally. Vanadium is a critical strategic metal widely used in aerospace, defense, energy storage, specialty alloys, and other sectors. Currently, China and Russia together supply approximately 80% to 85% of the world's vanadium.
Alberto Arias, Executive Chairman and Co-Chief Executive Officer of Largo, stated that the first order from the U.S. Defense Logistics Agency represents a transformative milestone for Largo, validating the strategic importance of the company's high-purity vanadium products. Co-Chief Executive Officer Daniel Tellechea noted that the company will adjust its production and commercial plans starting July 2026 to support the fulfillment of this order, which is expected to increase the average realized price of vanadium products, optimize the sales mix, and expand the company's market share in the United States without incurring relevant import duties.
The receipt of this delivery order marks Largo's official recognition as an approved supplier within the U.S. defense industrial base and critical materials ecosystem. This order represents Largo's first direct supply of vanadium products to the U.S. government, reflecting America's strategic efforts to diversify its critical minerals supply chain.
