Ivanhoe Electric's VRB Energy Subsidiary and Red Sun Sign Definitive Agreements for Formation of New Grid Scale Battery Joint Venture
Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) has announced the signing of Definitive Agreements between its 90%-owned subsidiary, VRB Energy Inc., and Shanxi Red Sun Co., The agreements finalize the terms of a transaction announced on September 23, 2024, forming a Joint Venture to expand manufacturing and sales of vanadium redox flow battery systems. Key points include:
1. Red Sun will provide a $35 million capital increase to the Joint Venture.
2. Ivanhoe Electric will allocate $20 million from the transaction proceeds to establish a separate US-based vanadium redox battery business in Arizona.
3. The Joint Venture will be structured as 51% / 49% ownership.
4. The Arizona facility is expected to produce 50 megawatts per year of VRB-ESS® vanadium flow batteries.
The agreements were signed on October 15, 2024, with the joint venture expected to be established by the end of the month, subject to certain conditions and regulatory filings.
Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ha annunciato la firma di Accordi Definitivi tra la sua controllata al 90%, VRB Energy Inc., e Shanxi Red Sun Co. Gli accordi finalizzano i termini di una transazione annunciata il 23 settembre 2024, che prevede la creazione di una Joint Venture per espandere la produzione e le vendite dei sistemi di batterie a flusso redox al vanadio. I punti chiave includono:
1. Red Sun fornirà un aumento di capitale di $35 milioni alla Joint Venture.
2. Ivanhoe Electric destinerà $20 milioni dai proventi della transazione per avviare un'attività separata di batterie a flusso al vanadio negli Stati Uniti, in Arizona.
3. La Joint Venture sarà strutturata con una proprietà del 51% / 49%.
4. L'impianto in Arizona dovrebbe produrre 50 megawatt all'anno di batterie a flusso al vanadio VRB-ESS®.
Gli accordi sono stati firmati il 15 ottobre 2024, con l'aspettativa che la joint venture venga stabilita entro la fine del mese, soggetta a determinate condizioni e registrazioni normative.
Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ha anunciado la firma de Acuerdos Definitivos entre su subsidiaria al 90%, VRB Energy Inc., y Shanxi Red Sun Co. Los acuerdos finalizan los términos de una transacción anunciada el 23 de septiembre de 2024, formando una joint venture para expandir la fabricación y las ventas de sistemas de baterías de flujo redox de vanadio. Los puntos clave incluyen:
1. Red Sun proporcionará un aumento de capital de $35 millones a la joint venture.
2. Ivanhoe Electric destinará $20 millones de los ingresos de la transacción para establecer un negocio separado de baterías de flujo de vanadio en los Estados Unidos, en Arizona.
3. La joint venture se estructurará con una propiedad de 51% / 49%.
4. Se espera que la instalación en Arizona produzca 50 megavatios al año de baterías de flujo de vanadio VRB-ESS®.
Los acuerdos fueron firmados el 15 de octubre de 2024, y se espera que la joint venture se establezca para fin de mes, sujeto a ciertas condiciones y presentaciones regulatorias.
아이반호 전기 주식회사 (NYSE American: IE) (TSX: IE)가 90% 출자 자회사인 VRB 에너지 주식회사와 산시 레드선 주식회사 간의 확정 계약 체결을 발표했습니다. 이 계약은 2024년 9월 23일 발표된 거래의 조건을 확정짓고 바나듐 레독스 흐름 배터리 시스템의 제조 및 판매를 확장하기 위한 합작 투자를 형성합니다. 주요 사항은 다음과 같습니다:
1. 레드선은 합작 투자에 3500만 달러의 자본 증가를 제공합니다.
2. 아이반호 전기는 거래 수익금 중 2000만 달러를 할당하여 애리조나에 미국 기반의 별도의 바나듐 레독스 배터리 사업을 설립합니다.
3. 합작 투자는 51% / 49% 소유 구조로 구성됩니다.
4. 애리조나 시설은 연간 50메가와트의 VRB-ESS® 바나듐 흐름 배터리를 생산할 것으로 예상됩니다.
계약은 2024년 10월 15일에 체결되었으며, 특정 조건과 규제 제출이 완료되면 이달 말까지 합작 투자가 설립될 것으로 예상됩니다.
Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) a annoncé la signature d'Accords Définitifs entre sa filiale à 90 %, VRB Energy Inc., et Shanxi Red Sun Co. Les accords finalisent les termes d'une transaction annoncée le 23 septembre 2024, formant une joint venture pour étendre la fabrication et la vente de systèmes de batteries à flux redox au vanadium. Les points clés incluent :
1. Red Sun fournira une augmentation de capital de 35 millions de dollars à la joint venture.
2. Ivanhoe Electric allouera 20 millions de dollars des produits de la transaction pour établir une entreprise distincte de batteries à flux au vanadium basée aux États-Unis, en Arizona.
3. La joint venture sera structurée avec une propriété de 51 % / 49 %.
4. L'installation en Arizona devrait produire 50 mégawatts par an de batteries à flux au vanadium VRB-ESS®.
Les accords ont été signés le 15 octobre 2024, et la joint venture est prévue pour être établie d'ici la fin du mois, sous réserve de certaines conditions et dépôts réglementaires.
Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) hat die Unterzeichnung von endgültigen Vereinbarungen zwischen ihrer 90%-igen Tochtergesellschaft VRB Energy Inc. und Shanxi Red Sun Co. bekannt gegeben. Die Vereinbarungen finalisieren die Bedingungen einer am 23. September 2024 angekündigten Transaktion zur Bildung eines Joint Ventures zur Expansion der Herstellung und des Verkaufs von Vanadium-Redox-Flow-Batteriesystemen. Wichtige Punkte sind:
1. Red Sun wird dem Joint Venture eine Kapitalerhöhung von 35 Millionen Dollar zur Verfügung stellen.
2. Ivanhoe Electric wird 20 Millionen Dollar aus den Transaktionserlösen verwenden, um ein separates, in den USA ansässiges Vanadium-Redox-Batteriegeschäft in Arizona aufzubauen.
3. Das Joint Venture wird als 51% / 49% Eigentumsverhältnis strukturiert.
4. Die Einrichtung in Arizona wird voraussichtlich 50 Megawatt pro Jahr von VRB-ESS® Vanadium-Flow-Batterien produzieren.
Die Vereinbarungen wurden am 15. Oktober 2024 unterzeichnet, wobei erwartet wird, dass das Joint Venture bis Ende des Monats gegründet wird, vorbehaltlich bestimmter Bedingungen und regulatorischer Einreichungen.
- Formation of a Joint Venture with Red Sun to expand vanadium redox flow battery business
- $35 million capital increase from Red Sun for the Joint Venture
- Establishment of a US-based vanadium redox battery business in Arizona with $20 million investment
- Planned production capacity of 50 megawatts per year for the Arizona facility
- None.
Insights
This deal marks a significant strategic move for Ivanhoe Electric, positioning the company to capitalize on the growing grid-scale battery market. The
The structure of the deal, with Ivanhoe Electric retaining a
Investors should note that while this move diversifies Ivanhoe Electric's portfolio and potentially opens new revenue streams, the success will depend on market adoption of vanadium redox flow battery technology and the company's ability to scale production efficiently. The transaction's impact on Ivanhoe Electric's financials and long-term growth prospects warrants close monitoring in the coming quarters.
The formation of this joint venture and the establishment of a U.S.-based vanadium redox flow battery (VRFB) facility represent a significant development in the grid-scale energy storage sector. VRFBs offer several advantages over lithium-ion batteries for stationary storage applications, including longer cycle life, deeper discharge capabilities and better safety profiles.
The 50 MW annual production capacity planned for the Arizona facility is substantial, potentially positioning Ivanhoe Electric as a major player in the U.S. VRFB market. This move aligns with growing interest in long-duration energy storage solutions, which are important for integrating higher levels of renewable energy into the grid.
However, challenges remain. VRFBs face competition from rapidly improving lithium-ion technologies and emerging alternatives. The success of this venture will depend on Ivanhoe Electric's ability to reduce costs, improve energy density and secure key supply chain components, particularly high-purity vanadium electrolyte. The company's ability to leverage its mining expertise for vanadium sourcing could provide a competitive advantage in this regard.
Ivanhoe Electric to Allocate
Phoenix, Arizona--(Newsfile Corp. - October 15, 2024) - Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ("Ivanhoe Electric") Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce today the signing of Definitive Agreements (the "Agreements") between the Company's
The Joint Venture, which will receive a
Mr. Melvin commented: "Today's signing of the definitive agreements between our VRB Energy subsidiary and Red Sun allows Ivanhoe Electric to retain exposure to growing grid-scale battery markets through the creation of our Joint Venture. This transaction also provides us with
The agreements were signed on October 15, 2024. The establishment of the
About Red Sun
Shanxi Red Sun Co., Ltd ("Red Sun") is a prominent Asian investment firm specializing in new energy and advanced technologies, with several publicly listed companies under its umbrella. Red Sun's diverse portfolio spans industries such as new energy, new materials, high-end manufacturing, advanced equipment, biopharmaceuticals, modern agriculture, and cultural communication. Guided by a philosophy of sustained financial backing, comprehensive resource allocation, and targeted industrial development, Red Sun has recently expanded its focus to include mineral resources, critical materials, and key technologies in the energy storage supply chain. Moving forward, the group is committed to deepening its investments in new energy storage, positioning itself as a future leader in this rapidly growing sector.
About VRB Energy
VRB Energy is a clean technology innovator that has commercialized the largest vanadium flow battery on the market, the VRB-ESS®, certified to UL1973 product safety standards. VRB-ESS® is best suited for solar photovoltaic integration onto utility grids and industrial sites, as well as backup for electric vehicle charging stations. Vanadium flow battery systems are ideally suited to stabilize isolated microgrids, integrating solar and wind power in a safe, reliable, low-maintenance, and environmentally friendly manner. VRB Energy grid-scale energy storage systems allow for flexible, long-duration energy with proven high performance. VRB Energy is a subsidiary of Ivanhoe Electric. Website: www.vrbenergy.com.
About Ivanhoe Electric
We are a U.S. company that combines advanced mineral exploration technologies with electric metals exploration projects predominantly located in the United States. We use our accurate and powerful Typhoon™ geophysical surveying system, together with advanced data analytics provided by our subsidiary, Computational Geosciences Inc., to accelerate and de-risk the mineral exploration process as we seek to discover new deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. We believe the United States is significantly underexplored and has the potential to yield major new discoveries of critical metals. Our mineral exploration efforts focus on copper as well as other metals including nickel, vanadium, cobalt, platinum group elements, gold and silver. Through the advancement of our portfolio of electric metals exploration projects, headlined by the Santa Cruz Copper Project in Arizona and the Tintic Copper-Gold Project in Utah, as well as other exploration projects in the United States, we intend to support United States supply chain independence by finding and delivering the critical metals necessary for the electrification of the economy. We also operate a 50/50 joint venture with Saudi Arabian Mining Company Ma'aden to explore for minerals on ~48,500 km2 of underexplored Arabian Shield in the Kingdom of Saudi Arabia. Website: www.ivanhoeelectric.com.
Contact Information
Mike Patterson
Vice President, Investor Relations and Business Development
Email: mike@ivnelectric.com
Phone: 1-480-601-7878
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Ivanhoe Electric's Executive Chairman Robert Friedland: @robert_ivanhoe
Ivanhoe Electric: @ivanhoeelectric
Ivanhoe Electric's investor relations website located at www.ivanhoeelectric.com should be considered Ivanhoe Electric's recognized distribution channel for purposes of the Securities and Exchange Commission's Regulation FD.
Forward-Looking Statements
Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect Ivanhoe Electric's current expectations regarding future events, performance and results and speak only as of the date of this news release.
Such statements in this news release include, without limitation statements regarding the establishment of the Joint Venture by the end of the month, the successful completion of conditions precedent to closing, the successful completion of post-transfer matters following Chinese regulatory filings, the success of the businesses of the Joint Venture, the capital contributions of Red Sun toward the Joint Venture, the establishment, success and funding of a vanadium redox battery manufacturing business located in the Arizona, and other planned or potential developments in the businesses of Ivanhoe Electric.
Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including any inability to negotiate and sign mutually agreeable definitive agreements; any inability to satisfy all applicable closing conditions; changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the results of exploration and drilling activities and/or the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries, and the impact of the COVID-19 pandemic and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors described in Ivanhoe Electric's Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission at www.sec.gov.
No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release, and Ivanhoe Electric expressly disclaims any requirement to do so.
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FAQ
What is the purpose of the Joint Venture between Ivanhoe Electric's VRB Energy and Red Sun?
How much capital is Red Sun investing in the Joint Venture with Ivanhoe Electric (NYSE American: IE)?
What are Ivanhoe Electric's plans for the US-based vanadium redox battery business?
When were the Definitive Agreements signed for the Ivanhoe Electric (NYSE American: IE) and Red Sun Joint Venture?
