REG - Invinity Energy Sys - Chinese Strategic Partnership

Invinity Energy SystemsAnnouncement

11/07/2025 11:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250711:nRSK7685Qa&default-theme=true

RNS Number : 7685Q  Invinity Energy Systems PLC  11 July 2025

The information contained within this Announcement is deemed by Invinity
Energy Systems plc to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018 ("MAR").

 

 

11 July 2025

Invinity Energy Systems plc

 

("Invinity" or the "Company")

 

Manufacturing and Supply Chain Agreement with Chinese Strategic Partner

Agreement marks entry into Chinese market for Invinity and aims to provide
long-term electrolyte price security that further accelerates cost reduction
program

 

Invinity Energy Systems plc (AIM: IES) (OTCQX: IESVF), a leading global
manufacturer of utility-grade energy storage, 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.

 

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.

 

 

Mr Liao Zhanghui, Executive Director, UESNT said:

 

"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."

 

Jonathan Marren, Chief Executive Officer at Invinity said:

 

"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."

 

Stay up to date with news from Invinity. Join the distribution list for the
Company's monthly investor newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) .

 

Enquiries:

 

 Invinity Energy Systems plc                                 +44 (0)20 4551 0361
 Jonathan Marren, Chief Executive Officer

 Joe Worthington, Senior Director, Corporate Affairs

 Canaccord Genuity (Nominated Adviser and Joint Broker)      +44 (0)20 7523 8000
 Henry Fitzgerald-O'Connor / Harry Pardoe / Charlie Hammond

 VSA Capital (Financial Adviser and Joint Broker)            +44 (0)20 3005 5000
 Andrew Monk / Andrew Raca

 

Notes to Editors

 

Invinity Energy Systems plc (AIM: 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 up to 30 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 more
than 190 MWh of systems deployed, contracted for delivery or awarded for
projects across more than 90 sites in 17 countries, Invinity is active in all
major global energy storage markets and has operations in the UK, Canada, USA
and China. Invinity Energy Systems plc is quoted in the UK on AIM and trades
in the USA on OTCQX.

 

To find out more, visit invinity.com (https://invinity.com/?utm_source=rns) ,
sign up to our monthly Investor Newsletter here
(https://invinity.com/newsletter/?utm_source=iesrns) or contact Investor
Relations on via +44 (0)20 4551 0361 or ir@invinity.com
(mailto:ir@invinity.com) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUWPMUPAGUG