Largo Inc. saw its shares climb as much as 2% in after-hours trading after the company announced that a subsidiary has been awarded a $60.1 million firm-fixed-price delivery order by the U.S. Defense Logistics Agency Strategic Materials.
The delivery order was issued under a recently granted five-year Indefinite Delivery, Indefinite Quantity - IDIQ - contract. It specifies the supply of high-purity vanadium pentoxide produced at Largo's Maracás Menchen operation in Bahia, Brazil. Scheduled shipments under this order extend through January 2030.
Company disclosures state that the Largo award is part of a broader, shared contract package with a combined potential value of up to $125 million. The five-year IDIQ contract sets the overall purchasing framework for the U.S. Government, while individual delivery orders constitute firm commitments that define volumes, pricing and delivery timetables.
To support execution of the U.S. delivery order, Largo said it will begin adjusting its production and sales programs starting in July 2026. The company indicated that the order is expected to lift its average realized vanadium price, improve its sales mix and increase Largo's exposure to the U.S. market.
Largo identifies itself as the world’s largest primary vanadium producer. Its vanadium products serve multiple industries including steel, aerospace, defense, chemical and energy storage.
In addition to its primary operations, the Toronto-based company holds a 37.4% ownership stake in Storion Energy, a joint venture with Stryten Energy that focuses on producing electrolyte for vanadium flow battery energy storage solutions in the U.S.
Context for markets and operations
The delivery order establishes a multi-year commercial commitment with a U.S. government agency and will be executed from Largo's Brazil-based Maracás Menchen facility. The arrangement sits within a five-year IDIQ structure that can support subsequent delivery orders under agreed terms.
What the company has said
- The order is a firm-fixed-price delivery order valued at $60.1 million.
- Deliveries are scheduled through January 2030 and will be fulfilled from Maracás Menchen in Bahia, Brazil.
- Production and sales programs will be adjusted beginning July 2026 to support order execution.
- The order is part of a shared award with an aggregate potential value up to $125 million.
Note: This article reports the company's statements and transaction specifics as disclosed by Largo Inc. No additional or speculative information has been introduced.