Largo and Stryten Energy Finalize Formation of Storion Energy to Strengthen U.S. Energy Resilience and Address Long Duration Energy Storage Needs
Largo (TSX: LGO) (NASDAQ: LGO) has finalized the formation of Storion Energy , a joint venture with Stryten Critical E-Storage, effective January 31, 2025. The partnership aims to establish a domestic supply chain for vanadium flow battery components and electrolyte manufacturing in the United States.
The joint venture combines Largo's high-quality vanadium supply, Largo Physical Vanadium Corp.'s electrolyte leasing model, and Stryten's U.S.-based manufacturing expertise. Both companies hold a 50% equity stake in Storion. As part of the transaction, Stryten has paid US$1 million to Largo and will contribute an additional US$6 million over time to fund operations.
The venture focuses on removing barriers to entry for battery manufacturers by providing domestically sourced, price-competitive components for the flow battery industry. This strategic collaboration aims to enhance grid stability and energy security while promoting the adoption of vanadium flow battery solutions.
Largo (TSX: LGO) (NASDAQ: LGO) ha concluso la formazione di Storion Energy, una joint venture con Stryten Critical E-Storage, con data effettiva dal 31 gennaio 2025. L'obiettivo della partnership è stabilire una catena di approvvigionamento nazionale per la produzione di componenti eelettroliti per batterie a flusso di vanadio negli Stati Uniti.
La joint venture combina l'approvvigionamento di vanadio di alta qualità di Largo, il modello di leasing di elettroliti di Largo Physical Vanadium Corp. e l'expertise manifatturiera di Stryten negli Stati Uniti. Entrambe le aziende detengono una quota di partecipazione del 50% in Storion. Nell'ambito della transazione, Stryten ha pagato 1 milione di dollari a Largo e contribuirà con ulteriori 6 milioni di dollari nel tempo per finanziare le operazioni.
La joint venture si concentra sull'eliminazione delle barriere d'ingresso per i produttori di batterie fornendo componenti di provenienza nazionale a prezzi competitivi per l'industria delle batterie a flusso. Questa collaborazione strategica mira a migliorare la stabilità della rete e la sicurezza energetica, promuovendo nel contempo l'adozione delle soluzioni di batterie a flusso di vanadio.
Largo (TSX: LGO) (NASDAQ: LGO) ha finalizado la formación de Storion Energy, una empresa conjunta con Stryten Critical E-Storage, con efecto a partir del 31 de enero de 2025. La asociación tiene como objetivo establecer una cadena de suministro nacional para la fabricación de componentes y electrolitos de baterías de flujo de vanadio en los Estados Unidos.
La empresa conjunta combina el suministro de vanadio de alta calidad de Largo, el modelo de arrendamiento de electrolitos de Largo Physical Vanadium Corp. y la experiencia manufacturera basada en EE. UU. de Stryten. Ambas compañías tienen un 50% de participación en el capital de Storion. Como parte de la transacción, Stryten ha pagado 1 millón de dólares a Largo y contribuirá con otros 6 millones de dólares con el tiempo para financiar las operaciones.
La empresa conjunta se centra en eliminar las barreras de entrada para los fabricantes de baterías al proporcionar componentes de origen nacional y competitivos en precio para la industria de baterías de flujo. Esta colaboración estratégica tiene como objetivo mejorar la estabilidad de la red y la seguridad energética, al tiempo que promueve la adopción de soluciones de baterías de flujo de vanadio.
Largo (TSX: LGO) (NASDAQ: LGO)는 Stryten Critical E-Storage와의 합작 투자인 Storion Energy의 형성을 완료하였으며, 이는 2025년 1월 31일부터 효력을 발생합니다. 이 파트너십의 목적은 미국 내에서 바나듐 플로우 배터리 구성 요소와 전해질 제조를 위한 국내 공급망을 구축하는 것입니다.
이 합작 투자에는 Largo의 고품질 바나듐 공급, Largo Physical Vanadium Corp.의 전해질 임대 모델, 및 Stryten의 미국 기반 제조 전문성이 결합됩니다. 두 회사는 Storion에서 각각 50%의 지분을 보유하고 있습니다. 거래의 일환으로, Stryten은 Largo에 100만 달러를 지급하였으며, 시간이 지남에 따라 운영 자금을 지원하기 위해 추가로 600만 달러를 기여할 것입니다.
이 합작 투자에서는 국내에서 조달된 가격 경쟁력 있는 구성 요소를 제공함으로써 배터리 제조업체의 진입 장벽을 제거하는 데 중점을 둡니다. 이 전략적 협력은 전력망의 안정성과 에너지 안보를 향상시키고 바나듐 플로우 배터리 솔루션의 채택을 촉진하는 것을 목표로 합니다.
Largo (TSX: LGO) (NASDAQ: LGO) a finalisé la création de Storion Energy, une coentreprise avec Stryten Critical E-Storage, effective au 31 janvier 2025. Le partenariat vise à établir une chaîne d'approvisionnement nationale pour la fabrication de composants et d'électrolytes de batteries à flux de vanadium aux États-Unis.
La coentreprise regroupe l'approvisionnement en vanadium de haute qualité de Largo, le modèle de location d'électrolytes de Largo Physical Vanadium Corp. et l'expertise manufacturière de Stryten basée aux États-Unis. Les deux entreprises détiennent chacune 50 % des actions de Storion. Dans le cadre de la transaction, Stryten a versé 1 million de dollars à Largo et contribuera au fil du temps à hauteur de 6 millions de dollars supplémentaires pour financer les opérations.
La coentreprise se concentre sur la suppression des obstacles à l'entrée pour les fabricants de batteries en fournissant des composants compétitifs en termes de prix et d'origine nationale pour l'industrie des batteries à flux. Cette collaboration stratégique vise à améliorer la stabilité du réseau et la sécurité énergétique, tout en favorisant l'adoption de solutions de batteries à flux de vanadium.
Largo (TSX: LGO) (NASDAQ: LGO) hat die Gründung von Storion Energy, einem Joint Venture mit Stryten Critical E-Storage, zum 31. Januar 2025 abgeschlossen. Ziel der Partnerschaft ist es, eine nationale Lieferkette für die Herstellung von Komponenten und Elektrolyten für Vanadium-Flow-Batterien in den Vereinigten Staaten aufzubauen.
Das Joint Venture kombiniert die hochwertige Vanadiumversorgung von Largo, das Leasingmodell für Elektrolyte von Largo Physical Vanadium Corp. und die Fertigungsexpertise von Stryten in den USA. Beide Unternehmen halten eine 50-prozentige Beteiligung an Storion. Im Rahmen der Transaktion hat Stryten 1 Million US-Dollar an Largo gezahlt und wird im Laufe der Zeit zusätzlich 6 Millionen US-Dollar zur Finanzierung der Aktivitäten beitragen.
Das Joint Venture konzentriert sich darauf, Hindernisse für den Markteintritt von Batterieherstellern zu beseitigen, indem es preislich wettbewerbsfähige Bauteile aus Inlandsquellen für die Flow-Batterieindustrie bereitstellt. Diese strategische Zusammenarbeit zielt darauf ab, die Netzstabilität und die Energiesicherheit zu erhöhen und gleichzeitig die Akzeptanz von Vanadium-Flow-Batterielösungen zu fördern.
- Received immediate US$1 million cash payment from Stryten
- Secured commitment for additional US$6 million in operational funding from Stryten
- Established 50% equity stake in new joint venture
- Created direct channel for Largo's vanadium products into the energy storage market
- Secured right of first offer agreement for vanadium products with Storion
- Contribution of certain vanadium flow battery-related assets and liabilities to Storion
- Less board control with Stryten holding one additional seat
Insights
The formation of Storion Energy represents a strategically significant move in the North American energy storage landscape. The joint venture addresses three critical market barriers simultaneously: domestic supply chain constraints, cost competitiveness and technological integration.
The deal structure reveals careful consideration of long-term value creation:
- Stryten's
$7 million commitment ($1 million upfront plus$6 million in operational funding) indicates strong confidence in the venture's potential - The 50-50 equity split, combined with Stryten's additional board seat, creates a balanced governance structure while maintaining clear decision-making capabilities
- The right of first offer agreement for vanadium products ensures supply chain security
The vertical integration strategy is particularly noteworthy as it creates a complete domestic supply chain for vanadium flow batteries - from raw materials to finished products. This positions Storion to potentially benefit from various government initiatives promoting domestic manufacturing and energy security, including potential IRA (Inflation Reduction Act) incentives.
The innovative electrolyte leasing model through LPV could be a game-changer for market adoption. By potentially reducing upfront costs and offering flexibility in deployment, this model could accelerate market penetration in the utility-scale energy storage sector, where capital costs are a significant barrier.
This joint venture emerges at a important time in the energy storage market evolution. Long-duration energy storage (LDES) is becoming increasingly critical for grid stability as renewable energy penetration grows. Vanadium flow batteries offer distinct advantages over lithium-ion alternatives, particularly in applications requiring 4+ hours of storage duration.
The market implications are substantial:
- Creation of the first fully integrated domestic supply chain for vanadium flow batteries in North America
- Potential for significant cost reductions through manufacturing optimization and economies of scale
- Enhanced energy security through domestic production of critical components
The timing aligns with growing utility and grid operator interest in LDES solutions, particularly given the increasing frequency of extreme weather events and grid reliability challenges. Storion's integrated approach could accelerate market adoption by addressing both technical and economic barriers simultaneously.
Storion is a joint venture focused on removing the barriers to entry for battery manufacturers to domestically sourced, price-competitive components for the flow battery industry, including vanadium electrolyte. This partnership leverages access to Largo’s high-quality vanadium supply, Largo Physical Vanadium Corp.’s (“LPV”) (TSX.V: VAND) (OTCQX: VANAF) innovative electrolyte leasing model and Stryten’s
Francesco D’Alessio, President of LCE, stated: “The closing of this transaction represents a transformational step for Largo as we advance our investment strategy of integrating into the fast-growing vanadium flow battery market. Storion Energy now provides a direct channel for Largo’s high-quality vanadium products into the long duration energy storage sector, reinforcing our position as a leading and reliable supplier of vanadium.”
He continued: “Through Storion, we are establishing a fully integrated vanadium electrolyte supply chain in
Overview of Transaction:
-
Strategic Collaboration: Largo’s high-quality vanadium and sector knowledge, LPV’s innovative electrolyte leasing model, and Stryten’s
U.S. battery manufacturing expertise combine to provide solutions to strengthen energy resilience and grid reliability - Vertically Integrated Supply Chain: Storion establishes a domestic supply chain for vanadium electrolyte and key components in LDES
-
Support for Energy Security & Grid Stability: By enabling flow battery components for scalable LDES solutions, Storion will support
U.S. energy independence and grid infrastructure resilience - Accelerating Vanadium Flow Battery Adoption: Storion will provide cost-effective vanadium electrolyte and components, removing key barriers to vanadium flow battery commercialization
Summary of Transaction Details:
- Each of LCE and Stryten have contributed certain vanadium flow battery-related assets and liabilities to Storion
-
Stryten has paid
US in cash directly to Largo and will contribute$1 million US over time to fund Storion’s operations$6 million -
LCE and Stryten each hold a
50% equity interest in Storion, with customary pre-emption rights and anti-dilution protections - Storion’s board composition will be generally proportional to ownership, with Stryten holding one additional seat
- Largo has amended its Safekeeping and Supply Agreements with LPV and assigned its Safekeeping Agreement to Storion; Largo and Storion have also entered into a separate supply agreement, granting Storion a right of first offer for vanadium products
- Required third party consents, which were closing conditions, were received
About Storion Energy
Storion Energy intends to bring energy resilience and security to the
About Stryten Energy
Stryten Energy helps solve the world’s most pressing energy challenges with a broad range of energy storage solutions across the Essential Power, Motive Power, Transportation, Military and Government sectors. Headquartered in
About Largo Physical Vanadium Corp.
Largo Physical Vanadium (LPV) aims to provide a secure, convenient and exchange-traded investment alternative for investors interested in having direct exposure to physical vanadium, a metal essential to achieving a greener world in key industries such as steel, aerospace and energy storage. Vanadium is non-degrading and fully recyclable when used as electrolyte in vanadium flow batteries and offers carbon reducing attributes when used in steel alloying applications. LPV offers pure-play exposure to vanadium through its holdings of physical vanadium. LPV's strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and actively supply vanadium to end users of vanadium flow batteries to advance to integration of renewable energy in long duration storage. This strategy is integral to LPV's business plan, as it necessarily defrays the costs to LPV associated with storage of vanadium, and demonstrates the benefits and utility of vanadium, therefore supporting vanadium's value. For more information, please visit www.lpvanadium.com.
About Largo
Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in
Largo is also strategically invested in the clean energy storage sector through its
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com.
Cautionary Statement Regarding Forward-looking Statements:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934 and Section 27A of the US Securities Act of 1933. Forward‐looking statements in this press release include, but are not limited to, statements with respect to Storion’s business plans and strategic goals.
The following are some of the assumptions upon which forward-looking statements are based: that the parties to the Transaction will be able to work collaboratively as parties to the joint venture; and the ability of management of Storion to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”, although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the failure to realize the anticipated benefits of the Transaction; the inability to implement business plans; any inability to raise additional funds to meet capital requirements and pursue the growth strategy of the joint venture when and in the amounts needed; and other risks and uncertainties detailed in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and in Largo’s filings with the US Securities and Exchange Commission (the “SEC”), including Largo’s Annual Report on Form 40-F for the fiscal year ended December 31, 2023, which was filed with the SEC on March 22, 2024. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
These forward-looking statements speak only at the date of this press release. All subsequent oral or written forward-looking statements attributable to Largo, or any of its associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above. Largo expressly disclaims any obligation to update such statements other than as required by law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
Trademarks are owned by Largo Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204863107/en/
Investor Relations
Alex Guthrie
Director, Investor Relations
+1.416.861.9778
aguthrie@largoinc.com
Source: Largo Inc.
FAQ
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