Largo Resources announced that it has entered into a non-binding memorandum of understanding (MOU) with Vionx Energy Corporation, a company that develops, produces and sells Vanadium Redox Flow Batteries (VRBs) for utility grid applications.
The MOU summarizes the principal terms that may lead to Largo supplying vanadium electrolyte to Vionx to further advance research and development of VRBs using VNX Grid Energy Storage Systems. The two companies have agreed to continue discussions aimed at achieving stable pricing and capacity with an industry-leading value proposition for VRB systems.
The goal is to use Vionx’s product technical, cost, and partner advantages combined with Largo supply capacity, cost advantage, and high-quality processing capability.
The proposal set out between the parties in the MOU is conditional upon, among other things, the satisfactory completion of due diligence, negotiation, and execution of a definitive agreement. This includes setting out the terms and conditions of any transaction, approvals of the respective boards of directors, and receipt of all necessary regulatory and contractual consents and approvals.
The parties contemplate that the Definitive Agreement will provide that Vionx will be Largo’s partner for cooperative sales of vanadium products in the utility grid market. It would also see that Vionx uses Largo vanadium electrolyte in its VRB systems. The benefits and safety of VRB systems have been proven over the last two decades.
“This is a historic first step in establishing the first partnership between a VRB company and a global vanadium producer,” said Mark A. Smith, President and CEO of Largo. “We are extremely excited about this opportunity and the industry-leading value proposition that it presents. We are equally excited about joining the world-class ecosystem of Vionx partners including United Technologies Corp., Siemens, 3M, and Jabil.”
Subject to dealing with the conditions contained in the MOU, Largo and Vionx have agreed to work in good faith over the next three months to negotiate a Definitive Agreement, with the understanding that any supply of vanadium electrolyte may not occur for some time thereafter; and that Largo may provide either V2O5 or electrolyte depending on the needs of both parties.
“Our partnership with Largo represents the first of its kind in the VRB industry,” said David Vieau, President and CEO of Vionx. “We are thrilled to be at the leading edge of a transformative phase for the energy storage industry.”
Filed Under: Energy storage, News