Toronto, Ontario — February 23, 2026 — Leads & Copy —
Largo Inc. (TSX: LGO) (NASDAQ: LGO) announced today the termination of its iron ore calcine sale agreement after the required initial payment was not received. The company is also assessing recent developments related to U.S. tariff authority and noted the ongoing strength across vanadium markets.
The iron ore calcine sale agreement was terminated following non-receipt of the required initial payment. Largo retains full ownership of the 4.5 million tonnes of calcine iron ore inventory and is advancing discussions with alternative potential buyers. The termination is not expected to have a material impact on the Company’s financial position, liquidity, or ongoing operations.
Largo is assessing recent developments relating to U.S. tariff authority and assessing its operational flexibility, including its bonded inventories in U.S. Ports, to respond efficiently to potential changes in trade conditions.
U.S. ferrovanadium prices have continued to strengthen since the Company’s February 12 update, further widening the premium over Western Europe.
As previously disclosed in the Company’s February 5 and 12, 2026 press releases, the definitive agreement announced on January 20, 2026 for the sale of up to 4.5 million tonnes of iron ore calcine material was subject to receipt of an initial payment of US$2.9 million, which was originally due by January 30, 2026.
The Company agreed to defer the initial payment until February 9, 2026. Since the payment was not received, the Company issued formal notice of non-compliance and provided the counterparty with a cure period through February 20, 2026, to satisfy the outstanding payment obligation.
As the required payment was not received within that cure period, the agreement has been terminated in accordance with its terms. Largo intends to pursue its rights and remedies under the agreement against the counterparty.
No iron ore calcine was delivered under the agreement. Largo retains full ownership of the material, a valuable byproduct generated by its vanadium operations at the Maracás Menchen Mine in Brazil. The Company is reengaging with other interested parties.
Largo is actively assessing the implications of the recent U.S. Supreme Court decision regarding the scope of executive tariff authority and how potential adjustments may affect Brazilian-origin vanadium products, including vanadium pentoxide (“V₂O₅”) and ferrovanadium (“FeV”).
Largo was subject to a 50% tariff on direct Brazilian imports into the United States, which was struck down by the Supreme Court decision. Recent media reporting has suggested that tariff rates on certain products could be reimposed at rates of 10-15%, pending legal and administrative processes.
Even a slight reduction in tariff levels could quickly and significantly affect the U.S. vanadium market. Reducing tariff barriers would improve the competitiveness of Largo’s Brazilian-origin material, boost Largo’s supply flexibility in the U.S., and help address tight market conditions.
Largo currently has high purity vanadium units stored in a bonded warehouse within the United States which have not yet been imported in the U.S. thereby increasing Largo’s working capital tied to unsold inventories due to high U.S. tariffs. Assuming the implementation of the Supreme Court’s decision, tariffs will be modified or reduced, which could allow these units to be quickly released and supplied broadly to the Company’s customers in the U.S.
This positioning enables Largo to respond rapidly to any change in tariff conditions, potentially increasing near-term availability of both FeV and V₂O₅ for steel, aerospace, defense, and specialty alloy applications. The presence of bonded inventory in U.S. Ports enhances the immediacy of Largo’s potential market impact as tariff constraints are eased.
Since Largo’s last market update issued on February 12, 2026, vanadium prices have continued to strengthen materially across both FeV and V₂O₅ markets.
Since that date of the February 12 press release, European FeV prices have increased from approximately $25.6/kg to approximately $27.7/kg currently, reflecting continued upward momentum.
U.S. FeV prices have increased from around $17-18.5/lb in mid-February to over $21/lb now, with recent trades near $23/lb. Notably, V₂O₅ prices have also moved upward for the first time since the beginning of the year and are now above $5.5/lb, following sustained strength in FeV markets.
Largo remains a western-aligned primary producer capable of supplying both FeV and high-purity vanadium products. As tariff constraints are modified or reduced, the Company believes it is well-positioned to contribute additional primary units to the U.S. market and to provide improved supply security for U.S. customers.
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world’s largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.
Largo is also strategically invested in the clean energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.
The Company also holds a 100% interest in the Northern Dancer Tungsten-Molybdenum property located in the Yukon Territory, Canada, and 100% interest in the Currais Novos Tungsten Tailing Project near Natal, Brazil. Preliminary economic assessments were completed for each asset in 2011.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol “LGO”.
Structural supply constraints remain in the U.S. market, including limited conversion capacity and trade-related restrictions affecting certain regions.
This upward movement may signal tightening fundamentals across the broader vanadium value chain.
For more information on the Company, please visit www.largoinc.com.
Source: Largo Inc.
