Last checked at 26 Feb 2024 07:00
26 February 2024
Invinity Energy Systems plc
("Invinity" or the "Company")
Strategic Manufacturing Agreement Signed, Successful Mistral Performance Test
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF), a leading global manufacturer of utility-grade energy storage, is pleased to announce that it has entered into an agreement with its Taiwanese strategic partner, Everdura, to undertake domestic manufacturing of its next-generation vanadium flow battery ("VFB") product, code-named "Mistral", to serve the Taiwanese and other markets ("the Agreement").
Everdura has been Invinity's reseller since 1 December 2022. Everdura's parent company, Everbrite, made a £2.5m strategic investment into the Company which was announced 22 February 2023. On 14 September 2023, Everdura placed a 14.4 MWh pre-order for Mistral and entered into a MoU which proposed a strategic manufacturing partnership with Invinity which has now been superseded by this Agreement.
Under the Agreement, Everdura will manufacture Mistral VFBs to fulfil orders it intends to secure under the terms of the existing reseller agreement which targets more than 255 MWh of product sales over a three-year period. The Agreement states that Everdura will pay Invinity a royalty fee based on a material percentage of the sale price of any Mistral products sold. Everdura will also utilise Invinity's existing supply chain and purchase cell stacks directly from the Company, which will continue to be manufactured by Invinity at its facilities in the UK and Canada.
In addition, further to its December 2023 Year-End Business Update, Invinity's product development team has successfully undertaken initial performance testing of the first operating Mistral prototype. The Company is delighted to report that these tests have verified Mistral's fundamental performance targets and operating parameters. This significant development milestone enables Invinity to conclude the development of production tooling, processes and procedures required for manufacturing and delivery of initial Mistral modules and to build towards the planned commercial launch of the product later this year.
Separately to the above developments and in line with its 18 December 2023 announcement, the Board is very pleased with the level of interest shown in the Company by a number of potential strategic partners. Discussions with these parties are now at an advanced stage and continue to progress positively. On this basis, the Company estimates that it should be in a position to conclude an agreement with one or more of these partners within approximately four to six weeks.
Larry Zulch, Chief Executive Officer at Invinity said:
"Everdura has become an important strategic partner for Invinity, providing access to the important Taiwanese market and areas beyond. Our relationship with Everdura forms a template for regions where we believe we will be better represented by strong, local partners than by an organisation we build ourselves. This agreement, like many of our current activities, is intended to support the forthcoming global launch of our next-generation product, and with our first product prototype exhibiting encouraging performance, it is tremendously exciting to see our vision for Mistral becoming reality."
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Enquiries:
Invinity Energy Systems plc | +44 (0)20 4551 0361 |
Jonathan Marren, Chief Financial Officer and Chief Development Officer Joe Worthington, Director of Communications | |
Canaccord Genuity (Nominated Adviser and Joint Broker) | +44 (0)20 7523 8000 |
Henry Fitzgerald-O'Connor / Harry Pardoe | |
VSA Capital (Financial Adviser and Joint Broker) | +44 (0)20 3005 5000 |
Andrew Monk / Andrew Raca | |
Tavistock (Financial PR Advisor) | +44 (0)20 7920 3150 |
Simon Hudson / Gareth Tredway / Saskia Sizen | invinity@tavistock.co.uk |
Notes to Editors
Invinity Energy Systems plc (AIM: IES) (AQSE: IES) (OTCQX: IESVF) 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 suitable for the most demanding applications in renewable energy production. Energy storage systems based on Invinity's batteries are safe, reliable, and economical, and range in size from less than 250 kilowatt-hours to tens of megawatt-hours.
Invinity was created in April 2020 through the merger of two flow battery industry leaders: redT energy plc and Avalon Battery Corporation. With over 70 MWh of systems already deployed or contracted for delivery across over 79 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 plc is listed in the UK on AIM and AQSE and trades in the USA on OTCQX.
To find out more, visit invinity.com, sign up to our monthly Investor Newsletter here or contact Investor Relations on via +44 (0)20 4551 0361 or ir@invinity.com