Plan to manufacture and sell vanadium flow batteries in the United States to meet growing demand announced.
Tuesday 16 August 2022
Invinity Energy Systems 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.
Above: Invinity VS3 Flow Batteries on site in California, U.S.
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.
Above: Vanadium electrolyte in its four states, V2, V3, V4, V5
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.
“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.”
– Mark Smith, Chief Executive Officer, U.S. Vanadium
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.
“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.”
– Larry Zulch, Chief Executive Officer, Invinity Energy Systems