REG - Invinity Energy Sys - MoU Signed for Joint Venture with U.S. Vanadium

Invinity Energy SystemsAnnouncement

16/08/2022 07:00

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RNS Number : 0979W  Invinity Energy Systems PLC  16 August 2022

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 (https://invinity.com/?utm_source=rns)
 or call Investor Relations on +44 (0)204 551 0361

 

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