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Invinity Energy SystemsAnnouncement

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RNS Number : 9430C  Invinity Energy Systems PLC  05 May 2026

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").

 

 

5 May 2026

Invinity Energy Systems plc

 

("Invinity" or the "Company")

 

Trading and Commercial Update

 

Invinity Energy Systems plc (AIM: IES), a leading global manufacturer of
utility-grade energy storage, provides the following update on current trading
and commercial progress in the year to date, including material progress
achieved on the Company's product cost reduction programme.

 

Endurium Cost Reduction Programme

The Company's key focus remains on further reducing the cost of its Endurium
product in the near term so as to expand its addressable commercial market.
This builds on the very strong progress achieved in this area during 2025
during which the Endurium units shipped were at a materially lower product
cost than the previous generation product, the VS3.

 

At the beginning of this year, the Company launched an enhanced programme to
accelerate its product cost reduction plans and now has over 50 individual
workstreams in progress to achieve this end, a number of which are already
complete with immediate impact on Endurium units currently being manufactured
for delivery later this year.

 

This initiative includes engineering enhancements developed to increase
battery capacity within the existing product footprint as well as improvements
in technical specifications, reducing the number and complexity of components,
implementation of lower-cost production techniques, and further supply chain,
quality control and manufacturing efficiencies.

 

The majority of this programme is expected to be delivered by late 2026,
targeting a minimum 66% reduction in product cost per kWh compared to the VS3.
This cost reduction is now forecast to be achieved within 2 years, which is 18
months ahead of management's pre-programme expectations.

 

Operational and Technical Excellence

Operational and technical excellence is another key focus of the business and
an important strength of Invinity's which is critical in unlocking future
commercial success. The Company continues to receive highly positive feedback
from customers, evidenced by both public and private testimonials as well as
the consistent achievement of high technical scores during competitive
tendering processes.

 

In the year to date, the Company has manufactured or delivered over 40 MWh of
products to project sites and is pleased to note that more than 8.7 GWh of
energy has now been discharged by Invinity VFBs in service to customers,
underlining a strong and growing track record of field-performance for
Invinity technology.

 

The Invinity Copwood VFB Energy Hub, a 20.7 MWh project at a site in East
Sussex, is expected to be fully delivered later this week and once
commissioned will be the largest vanadium flow battery project in Europe. The
Company expects the battery to connect to the UK grid and begin generating
revenue in H2 2026, subject to final confirmation from the local Distribution
Network Operator, and looks forward to hosting interested shareholders at an
event at the site in due course.

 

The Company continues to progress numerous initiatives to scale up Invinity's
global manufacturing capacity, including the establishment of a U.S.
manufacturing facility later this year which will complement Invinity's
existing customer service facility in Vista, California.

 

Commercial Pipeline

As a result of the work done to reduce product cost and improve operational
and technical performance as set out above, the Company's wider commercial
pipeline continues to grow and now contains a number of highly significant
commercial, industrial and datacentre opportunities across Europe, North
America and Asia.

 

The pipeline also includes a portfolio of large-scale projects currently being
assessed as part of the UK's LDES Cap and Floor scheme, initial decisions on
which are expected to be announced by Ofgem in the near term. Additionally,
the Company is actively supporting bids proposing Endurium batteries for a
number of large-scale LDES tenders across the world including but not limited
to opportunities in Canada and India.

 

In January 2026, the Company announced that it was awaiting final notice to
proceed ("NTP") on orders for two solar-plus-storage projects in Hungary which
Invinity was informed by Ideona Group (one of Invinity's commercial partners
in Hungary), would be forthcoming during H1 2026. Whilst these sales contracts
still remain in place, the Company has now been made aware that due to issues
entirely unrelated to Invinity, NTP for these projects is unlikely to be
received and accordingly, management no longer expects these projects to
contribute to 2026 revenue. In recognition of the fact that the project delay
was not attributable to Invinity, Ideona has reaffirmed its strong intent to
continue to work to deploy Invinity's Endurium batteries and accordingly has
signed an amendment to the contract such that the batteries in that contract
can be deployed instead to an alternate site under development. Together,
Ideona and Invinity remain enthusiastic about the prospects for deploying the
Company's products together, and for the opportunity to expand Ideona's
existing Invinity VFB fleet to a growing number of project opportunities in
Hungary using both these existing sales contracts and additional orders.

 

At the same time, Invinity is continuing to work to close deals in its
pipeline for delivery in 2026 and beyond. For deals likely to deliver in the
nearer term, where commercial terms or documents have already been materially
agreed between parties, Invinity monitors and assists (where possible) with
the project owners' activities (for example securing grid connections,
off-take arrangements and financing arrangements) to conclude the overall
project as swiftly as possible. As such, assessing when such activities, which
are the responsibility of the project owner and not within Invinity's control
will complete and the project able to proceed remains challenging.

 

The above can be illustrated by the projects relating to the funding awards
from the U.S. DOE which were first announced in 2023 with contracting expected
to complete by the end of that year and delivery to occur in 2025. In the
event, the first project supported by this funding, the 12 MWh PNNL project
announced by the Company in December 2025, is now expected to be delivered in
2026. However, the Company notes positive progress in this area and is pleased
to confirm that it was recently notified that a further 3 projects had finally
concluded the DOE award contracting process and therefore can now commence
final contract negotiations with the client for project delivery expected to
begin in 2027.

 

Looking at the projects in the pipeline for potential 2026 delivery, whilst
Invinity's experience is that such projects do ultimately typically reach
close, the risk that this does not occur within a sufficient time to deliver
and recognise revenue for such projects in 2026 increases as time passes.
Accordingly, the table below summarises the commercial revenue outlook for
2026-2028 based on the current pipeline:

 

 Commercial Revenue & Project Grant Income      2026  2027  2028

                                                £m    £m    £m
 Backlog                                        8     -     -
 Near-term contracts                            6     27    9
 Development pipeline (risk weighted)           -     22    225
 Total                                          14    49    234

 

Where:

·    Backlog includes signed contracts expected to generate revenue in
the relevant year that have either been delivered (and revenue recognised),
are in the fulfilment phase or are awaiting Notice to Proceed ("NTP"). Risks
related to supply chain, fulfilment and/or receipt of NTP remain.

·    Near-term contracts includes projects where the customer has
indicated an intent to proceed, and where final contracting is underway.
Invinity has lower confidence in assessing the timing of delivery and revenue
for these projects as risks related to final negotiation and documentation
remain.

·    Development pipeline includes projects where the customer has
engaged Invinity in a procurement process, submitted Invinity's products to a
public procurement scheme or applied for relevant permits. Figures presented
are the sum of risk-weighted potential revenues from individual contracts,
taking into account uncertainty of conversion in the relevant time period and
is not an exhaustive list of all the leads with potential customers. Revenue
is expected to be recognised in the relevant year, however commercial and
development risks remain.

 

2025 Annual Report and Financial Statements

The Company confirms that the audit process for the year ending 30 December
2025 is well advanced and the Company remains on track to release its 2025
Annual Report and Financial Statements before 30 June 2026 in line with
expectations.

 

Jonathan Marren, Chief Executive Officer at Invinity said:

 

"As we move through 2026, Invinity is continuing to achieve critical
milestones in our path to becoming the global leader in providing safe,
durable long-duration energy storage solutions. Our Endurium cost-reduction
programme is delivering transformational results, strengthening our
competitiveness and expanding the commercial markets we can address.

 

At the same time, we are focused on converting a growing pipeline into
significant contract wins over the next six months, building the scale and
momentum needed to support our long-term growth ambitions.

 

We believe this combination of continued cost reduction alongside disciplined
commercial execution positions us for substantial revenue growth. We look
forward to near-term decisions under the UK LDES Cap and Floor scheme and
other opportunities that can accelerate adoption of long-duration storage at
scale."

 

Stay up to date with news from Invinity. Join the distribution list for the
Company's monthly investor newsletter here
(https://invinity.us13.list-manage.com/subscribe?u=5b8cb168d806f615c67752bf8&id=26dd4280e1)
.

 

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 (Joint Broker)                                  +44 (0)20 3005 5000
 Andrew Monk / Andrew Raca

 

Notes to Editors

 

Invinity Energy Systems plc (AIM: IES) is a world-leading manufacturer of
vanadium flow batteries for energy storage. Built in our factories in the UK
and Canada, the Company's proven, commercialised, longer duration energy
storage technology has been deployed at scale and dispatched gigawatt-hours of
electricity for customers across the world.

 

Invinity's safe, scalable and durable Endurium VFBs are a trusted and safer
alternative to lithium-ion batteries. Engineered for heavy-duty, high
throughput applications, they don't wear out, cannot catch fire and are
designed to be operated for 30 years or more. Our products address the
challenges of our global energy system, unlocking the power of renewable
generation by delivering energy storage without limits.

 

To find out more, visit invinity.com (https://invinity.com/?utm_source=rns) ,
sign up to our monthly Investor Newsletter here
(https://invinity.us13.list-manage.com/subscribe?u=5b8cb168d806f615c67752bf8&id=26dd4280e1)
or contact Investor Relations on via +44 (0)20 4551 0361 or ir@invinity.com
(mailto:ir@invinity.com) .

 

 

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