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Invinity Energy Systems PLC on Tuesday said it has signed a non-binding agreement to establish a US joint-venture to build and sell vanadium flow batteries.
Shares in the London-based energy storage company were up 13% to 44.10 pence each in London on Tuesday midday.
Invinity said it has signed a memorandum of understanding with US Vanadium LLC, which expresses mutual intent to create a US-based joint venture.
The 50:50 JV will be focused on building and selling vanadium flow batteries. It 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.
Invinity said that the JV expects to benefit from US 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 US and global energy infrastructure.
In particular, it noted the Biden administration's Bipartisan Infrastructure Bill, which was signed into law in November last year and, more recently, the Inflation Reduction Act of 2022 which is expected to be signed into law this week.
The firm explained the bills ‘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 US manufacturing and domestic content, aligning well with the intended purpose of this new JV,’ Invinity said.
Under the terms of the agreement, USV will contribute up to $500,000 towards external expenses incurred in the pursuit of US local, state and federal support, as well as other sources of industrial and commercial support.
The company added that it will release further information regarding the JV as it progresses towards a definitive agreement.
Last week, Invinity began trading on the OTCQX Best Market in US under the ticker ‘IESVF’, as part of its wider US strategy to increase investor activity in the region.
Chief Executive Officer Larry Zulch said: ‘Our proposed joint venture with US Vanadium will bring our complementary strengths into alignment to help transform the American energy grid, earn the support of US state, and local governments, and create jobs in the US. We're thrilled to be working with US Vanadium on a venture built on so many combined strengths and with such vast potential.’
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