Last checked at 16 Aug 2022 07:00
16 August 2022
Invinity Energy Systems plc
("Invinity" or the "Company")
U.S. Vanadium and Invinity sign MoU to form U.S. Joint Venture
Plan to manufacture and sell vanadium flow batteries in the United States to meet growing demand announced
Invinity Energy Systems (OTCQX: IESVF; AIM: IES; AQSE: IES), leading global manufacturer of utility-grade energy storage, is pleased to announce it has signed a Memorandum of Understanding ("MoU") with U.S. Vanadium LLC ("USV") which expresses mutual intent to create a U.S.-based joint venture ("JV") focused on building and selling vanadium flow batteries in the United States of America.
The non-binding MoU outlines the principal terms under which the JV, to be owned 50:50 by Invinity and USV, will combine Invinity's flow battery expertise with USV's ability to supply high-quality vanadium electrolyte from high-purity vanadium, both of which USV produces at a facility in Arkansas.
The proposed JV expects to benefit from U.S. national, state, and local incentives to manufacture and sell energy storage products that transform intermittent renewable energy into a reliable, dispatchable and low-carbon pillar of the U.S. and global energy infrastructure.
The combination of the Biden administration's Bipartisan Infrastructure Bill, signed into law on 15 November 2021, and, more recently, the Inflation Reduction Act of 2022 which is expected to be signed into law this week, have created a strongly supportive climate for investment into energy transition infrastructure such as vanadium flow batteries. The legislation places further emphasis on the importance of U.S. manufacturing and domestic content, aligning well with the intended purpose of this new JV.
Under the terms set out in the MoU, USV proposes to contribute up to $500,000 towards the funding of external expenses incurred in the pursuit of applicable U.S. local, state, and federal support in addition to other sources of industrial and commercial support.
This MoU is the latest initiative to be executed as part of Invinity's strategy to expand its commercial and corporate presence in the U.S. and follows the Company's announcement on 8 August 2022 that it had commenced U.S. trading for Invinity shares via OTCQX.
Invinity will release further information regarding its relationship with USV as it progresses towards a definitive Joint Venture agreement.
About U.S. Vanadium
U.S. Vanadium produces and sells a range of specialty vanadium products, including high-purity vanadium pentoxide and high-quality electrolyte for vanadium flow batteries from its flagship facility in Hot Springs, Arkansas USA. The company is comprised of global leaders and investors in strategic materials, including in the mining, processing, purification, sale and distribution of vanadium specialty chemicals. Major investors in U.S. Vanadium include TechMet Limited, The Lind Partners, and other long-time leaders in the vanadium industry.
About Invinity
Invinity Energy Systems manufactures vanadium flow batteries for large-scale, high-throughput energy storage requirements of business, industry and electrical networks. Invinity's factory-built flow batteries run continually with no degradation for over 25 years, making them ideally suited for delivering intermittent renewable energy on demand. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and are designed for installations of up to hundreds of megawatt-hours. With offices in San Francisco, Vancouver, London and Edinburgh, Invinity has transformed vanadium flow batteries from a promising technology into a safer, longer-lasting competitor to lithium-ion batteries for stationary use.
Larry Zulch, Chief Executive Officer at Invinity said:
"Our proposed joint venture with U.S. Vanadium will bring our complementary strengths into alignment to help transform the American energy grid, earn the support of U.S., state, and local governments, and create jobs in the United States. We're thrilled to be working with U.S. Vanadium on a venture built on so many combined strengths and with such vast potential."
Mark Smith, Chief Executive Officer at U.S. Vanadium said:
"No company has installed more flow battery units than Invinity and we believe no company can currently match the capability U.S. Vanadium has to produce ultra-high-purity vanadium and vanadium electrolyte. By combining our abilities into a joint venture, we plan to make safe, reliable and economical battery systems available to a dramatically growing market hungry for alternatives to fire-prone lithium-based systems. We're pleased to be working with Invinity on this exciting endeavor."
Enquiries:
Invinity Energy Systems plc | +44 (0)204 551 0361 |
Peter Dixon-Clarke, Chief Financial Officer Joe Worthington, Director of Communications | |
Canaccord Genuity (Nominated Adviser and Joint Broker) | +44 (0)20 7523 8000 |
Henry Fitzgerald-O'Connor / James Asensio | |
VSA Capital (Financial Adviser and Joint Broker) | +44 (0)20 3005 5000 |
Andrew Monk / Simon Barton | |
EAS Advisors LLC (US Corporate Advisor) | +1 (646) 495 2225 |
Matthew Bonner / Chris Chesworth | |
Notes to Editors
Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With over 33 MWh of systems deployed to date across more than 50 sites in 15 countries, Invinity is active in all major global energy storage markets and has operations in the UK, Canada, USA, China and Australia. Invinity Energy Systems trades in the USA on OTCQX Best Market under the symbol "IESVF" and is listed on the AIM Market of the London Stock Exchange and on the Aquis Stock Exchange (AQSE).
To find out more, visit invinity.com or call Investor Relations on +44 (0)204 551 0361