This is what ...11 Jun 2020 18:42
Mikhail Nikomarov, co founder of Bushveld Energy and Chair or the Energy Storage Committee if Vanitec, said about the Avalon / Red merger in an interview in November 2019:
“To get scale you need to have orders, to have orders you need to get your costs down, you get costs down with economies of scale. One of the things that we liked in this specific transaction of Avalon Battery and RedT is a merger. It’s two companies looking at completely different markets having different skillsets, the ability to maybe have some synergies on the cost side on the R&D side, but you combine their pipelines and all of a sudden you’ve got a lot more scale, you get to that economy faster, and it’s not that you have to wait two years, you get there in one year, for example. Or instead of four years, you get there in two years. It means less capital to get there, and it’s a less risky investment. We think that is very good for the industry, and that is why we like that transaction."
“In terms of what we can bring capital is one but I think it is not just our capital. It's the ability to bring other investors along with us. Now a lot of times being the first is difficult, second is a lot easier. We don't mind being the first. We understand the risks a lot better than I think other investors, especially around the vanadium supply piece. We are very confident that it can be solved and we are ready to put our money just to prove that.”
Mikhail is at the heart of the vanadium and energy storage business. If he likes this merger and new company then surely others should take note. Just my opinion of course.
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