Australian institutional investors are ramping up their exposure to vanadium and junior ASX-listed player TNG is the latest to benefit.

The explorer (ASX:TNG) will add “several prominent Australian institutions” to its register after it received firm commitments for a $3.5 million placement.

“Vanadium has been one of the strongest performing metals of the past 18 months, with prices recently hitting decade-long highs due to tight global supply,” managing director Paul Burton told investors.

“At the same time, we have seen growing awareness of the potential for new markets in the battery storage and renewable sectors complementing conventional demand from the steel industry.”

About 90 per cent of global vanadium production is used to make high-strength steel, but future demand stems from its role in vanadium redox flow batteries, which can store more power and discharge it over a much longer period than lithium-ion batteries.

Our recent vanadium overview features a list of ASX stocks with exposure to the battery metal.

Protean Energy (ASX:POW) chairman Bevan Tarratt told Stockhead recently that the company had been contacted by a number of funds wanting exposure to the vanadium market, but that there was a lack of ASX-listed companies in the commodity.

Mount Peake is expected to produce 243,000 tonnes of vanadium pentoxide, 10.6 million tonnes of iron oxide and 3.5 million tonnes of titanium dioxide over a 17-year mine-life.

TNG shares over the past year.
TNG shares over the past year.

TNG estimates the project will generate life-of-mine net cashflow of $11.7 billion, with payback in three years.

Stockhead is seeking further comment from TNG.

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