Agreement marks entry into Chinese market for Invinity and aims to provide long-term electrolyte price security that further accelerates cost reduction program.
Friday 11 July 2025
Invinity Energy Systems is pleased to announce that it has entered into a licensing and royalty agreement (“the Agreement”) with a new Chinese strategic partner, Guangxi United Energy Storage New Materials Technology Limited (“UESNT”), a manufacturer of vanadium electrolyte and battery products based in the Guangxi Zhuang Autonomous Region in China.
Invinity and UESNT have together identified an opportunity for VFBs to provide effective, reliable, and high-performance energy storage at large scale in China that is commercially viable. Together, the partners believe that ENDURIUM has the right characteristics to be highly competitive in this, one of the largest single energy storage markets in the world.
Invinity has extensive VFB technology expertise and has demonstrated leadership in delivering low-cost, high-performance energy storage. UESNT has access to certain vanadium resources and has considerable expertise in and access to energy storage applications in China plus the ability to establish efficient manufacturing processes and a low-cost supply chain.
Accordingly, Invinity has agreed to support UESNT’s efforts to establish manufacturing capacity, reduce production costs and actively market and sell ENDURIUM within China, working together to deliver excellence in production and sales and mutually explore opportunities to implement continuous improvements, efficiencies and value to manufacturing.
“We are delighted to formally recognise this strategic partnership between Invinity and UESNT. Supported by the Xiamen government, we look forward to a strong and successful cooperation between our companies which will advance the deployment of vanadium flow batteries globally and further accelerate ENDURIUM product development.”
– Mr Liao Zhanghui, Executive Director, Guangxi United Energy Storage New Materials Technology Limited
Manufacturing Licence and Royalty Agreement
Under the Agreement, which runs to 2030, UESNT will gain the right to market, sell and manufacture ENDURIUM VFBs for the Chinese market. UESNT will pay Invinity a royalty fee based on the volume of ENDURIUM VFBs delivered each year as well as two one-off royalties, on satisfaction of certain conditions.
The Agreement targets production in the period to 2030 of at least 1.9 GWh, with an objective to produce the first 300 MWh in 2026 subject to confirmation by UESNT. Total production volumes under the agreement remain subject to UESNT securing demand therefore ultimate quanta and timings may be subject to change.
Under the Agreement, Invinity is able to source sub-components and completed ENDURIUM systems manufactured by UESNT for delivery outside of China, which the partners expect will significantly reduce the manufactured cost of ENDURIUM projects delivered worldwide and further enhance Invinity’s global competitive position.
The Agreement also contains a provision for Invinity to access via UESNT a stable, long-term source of vanadium electrolyte in China at a fixed price, or vanadium products at a discount to the then prevailing market price of such products in China, sufficient for the electrolyte needs of 6 GWh of VFBs.
This Agreement is strongly supportive of Invinity’s ENDURIUM cost down programme targets which were detailed in the FY2024 results. In addition to potentially reducing electrolyte cost inputs, this strategic partnership also aims to drive further cost out of the ENDURIUM supply chain by expanding production volumes and/or supplier relationships in best-cost regions such as China.
This latest strategic partnership represents a further execution of Invinity’s strategy to expand into new markets through strong partnerships and the Company continues to progress discussions with other partners in key regions to this effect.
Above: Jonathan Marren, Invinity CEO (front right) and Mr Liao Zhanghui, UESNT Executive Director (front left) signing the agreement in front of Xiamen City Mayor Wu Bin (centre left) and John Edwards, Director, Office for Investment, UK Government with Xiamen delegation (left) including C&D Group Chairman Xu Xiaoxi and Invinity delegation (right)
Mr Liao Zhanghui, Executive Director, UESNT and Jonathan Marren, Invinity’s CEO signed the licence and royalty agreement in London earlier today. Attending the signing ceremony were a number of key government figures including the Mayor of Xiamen City, Mr. Wu Bin, Xu Xiaoxi, Chairman of the Board, Xiamen C&D Group, and other Xiamen Government officials as well as John Edwards, Director, Office for Investment, UK Government.
“Entering into this partnership creates another exciting opportunity for Invinity. Through our cooperation with UESNT, we will not only be able to access new demand for our products within the large and growing Chinese market but also target significant cost reductions through supply chain and process improvements that should positively impact our entire business. Our hope is that a successful cooperation will significantly accelerate our cost-down efforts even further than our current aggressive targets.”
– Jonathan Marren, Chief Executive Officer, Invinity Energy Systems