Vanadium is compatible with iron and titanium, therefore vanadium foil is used in cladding titanium to steel. The moderate thermal neutron-capture cross-section and the short half-life of the isotopes produced by neutron capture makes vanadium a suitable material for the inner structure of a fusion reactor.anadium occurs naturally in about 65 different minerals and in fossil fuel deposits. It is produced in China and Russia from steel smelter slag; other countries produce it either from the flue dust of heavy oil, or as a byproduct of uranium mining.