en.Wedoany.com Reported - Brazil's Largo Resources recently received a $60.1 million supply order from the Strategic Materials Division of the U.S. Defense Logistics Agency (DLA) to provide high-purity vanadium pentoxide. The order falls under a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract previously signed between the two parties.

This batch of vanadium pentoxide will be produced at Largo's Maracás Menchen project in Bahia, Brazil, and is intended to replenish the U.S. defense stockpile. All deliveries must be completed by January 2030. The company stated that this contract is part of a shared award that could total up to $125 million, but Largo emphasized that there is no guarantee the DLA will issue further orders in the future.

The IDIQ contract model establishes an overall framework for the U.S. government's five-year procurement, while each delivery order is a legally binding commitment that specifies the quantity, price, and delivery schedule in advance. Largo's Executive President and Co-Chief Executive Officer Alberto Arias stated that the first order is a strategic milestone for the company. He believes that the DLA's initial order validates the strategic importance of Largo's high-purity vanadium products and solidifies the company's position as a reliable supplier of critical materials to the United States.

Co-Chief Executive Officer Daniel Tellechea revealed that the company has adjusted its production and sales plans in accordance with the contract requirements since July 2026. Through this order, Largo expects to increase the average selling price of its vanadium products, optimize its product mix, and expand its market share in the United States, without incurring applicable import duties.

Largo describes itself as the world's largest primary vanadium producer. Its vanadium products from the Maracás Menchen mine in Bahia are widely used in steel, aerospace, defense, chemicals, and energy storage sectors.