- Technology Metals (TMT) enters a memorandum of understanding (MoU) for a potential offtake deal with Indian steelmaker Tata Steel
- The companies will discuss the potential offtake of vanadium pentoxide from TMT’s Murchison Technology Metals project in WA, as well as a potential investment
- Tata Steel says vanadium is a “key component” in making steel as it increases strength, reduces weight and contributes to the reduction of carbon emissions
- Technology Metals shares are down 2.27 per cent and trading at 43 cents at 2:06 pm AEDT
Technology Metals (TMT) has entered a memorandum of understanding (MoU) for a potential offtake deal with Indian steelmaker Tata Steel.
The companies will engage in discussions regarding the offtake of vanadium pentoxide and other downstream vanadium products from TMT’s Murchison Technology Metals project (MTMP) in Western Australia.
There’s also potential for Tata Steel to invest in Technology Metals and/or its namesake project.
“High purity vanadium pentoxide from the MTMP is important in producing lower-emission ferrovanadium and vanadium nitride, which Tata Steel utilises in its steelmaking process,” TMT Managing Director Ian Prentice said.
“Together, TMT and Tata Steel can play an important part in reducing emissions in steel applications as the world progresses towards net zero carbon emissions.”
In the steel industry, vanadium is mainly used in metal alloys such as rebar and structural steel, aircraft and automotives. Adding a small amount of vanadium can reportedly increase steel strength by up to 100 per cent and reduce weight by up to 30 per cent.
Tata Steel’s Vice President of Group Strategic Procurement, Rajiv Mukerji, said vanadium was a “key component” in the company’s steelmaking process and he expected demand to grow as customers aimed to reduce carbon emissions.
“Working with Technology Metals Australia on opportunities surrounding primary vanadium and ferrovanadium production aligns with Tata Steel’s strategy to ensure reliable, stable supplies of raw materials to meet our customers’ future product requirements,” Mr Mukerji said.
The MoU is in place for five years, unless the companies agree to terminate it earlier.
Technology Metals shares were down 2.27 per cent and trading at 43 cents at 2:06 pm AEDT.